What is the price elasticity of demand for a cable car ride?
Know that the far increase on cable car rides was 67%. Price is $5 one way. Prices were raised to help ease a $57 million deficit. Bus and street car fares also went up $0.25 and $1.50 respectively. Cable car fares more than doubled. It costs $312/hour to operate the cable cares compared to the $188 for a street car ride and $121 for a diesel bus. As a result, cable care revenue is up 23%.