Officials at city bus corporation increased faresprices, Ask an Expert

Economics

Officials at City Bus Corporation increased fares(prices last year and were surprised to find that total revenue fell that year instead of increasingas expected. This tells us that

A) the demand for bus rides is income elastic.

B) the demand for bus rides is price inelastic.

C) the demand for bus rides is price elastic.

D) bus rides are inferior goods.

E) someone at City Bus Corp. is embezzling funds because a fare increase should havemeant an increase in total revenue.

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91725194

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