Find decrease price per ride based on price elasticity, Microeconomics

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Find decrease price per ride based on price elasticity

The total operating revenues of a public transportation authority are $100 million while its total operating costs are $120 million. The price of a ride is $1, and the price elasticity of demand for public transportation is -0.4. By law The PTA must take steps to eliminate its operating deficit. Should the transportation authority increase or decrease the price per ride based upon the price elasticity of demand?

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Microeconomics: Find decrease price per ride based on price elasticity

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Microeconomics: Find decrease price per ride based on price elasticity

Reference No:- TGS057544

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Recent Questions Asked Microeconomics

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Request for Solution File

Ask an Expert for Answer!!

Microeconomics: Find decrease price per ride based on price elasticity

Reference No:- TGS057544

Recent Questions Asked Microeconomics

Q : What is the price elasticity of demand for dvd players

Q : Corporation payout ratio problem

Q : Average number of customers in the drive

Q : Prepare in general journal format

Q : Find decrease price per ride based on price elasticity

Q : Daily process capacity of the processing plant

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