Author Question: If city officials expect that an increase in bus fares will raise mass transit revenues, they must ... (Read 96 times)

melina_rosy · **on:** Jul 1, 2018

If city officials expect that an increase in bus fares will raise mass transit revenues, they must think that the demand for bus travel is
a. elastic
b. unit elastic
c. inelastic
d. perfectly inelastic
e. -10

Question 2

Which of the following will cause demand to be relatively elastic?
a. There are few substitutes
b. The time interval is relatively long
c. The good is considered a necessity
d. The good involves a relatively small portion of the consumers' budget
e. The time interval is relatively short