The answer to your question is False
Answer:
2.77
the bus company should decrease price to increase revenues.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
percentage change in price = 1.21 / 0.99 - 1 = 0.222 = 22%
Percentage change in quantity demanded = 169 / 433 = -0.6097 = - 60.97%
Elasticity of demand = 60.97% / 22% = 2.77
Demand is elastic, so if price in reduced, there would be a rise in quantity demanded that would exceed the rise in price. This would increase revenues
Answer:
The Answer To This Question is B. a good credit score.
Explanation:
