1. Estimate the price elasticity of demand between 40p and 50p and between 50p and 60p. 2....
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1. Estimate the price elasticity of demand between 40p and 50p and between 50p and 60p.
2. Was the 50p fare the best fare originally?
3. The company considers lowering the fare to 30p, and estimates that demand will be 8.5 million passenger miles. It will have to put on extra buses, however. How should it decide?
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1 The midpoint formula for price elasticity is DQ d averageQ d DPav...View the full answer
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