Question: In the chapter, we calculated the likely long-run change in revenue if New York City were to raise mass transit fares from $2.00 to $2.50.

In the chapter, we calculated the likely long-run change in revenue if New York City were to raise mass transit fares from $2.00 to $2.50. Use the same procedure to calculate the short-run impact of this fare hike. This time, use an elasticity of 0.35, which is in the middle of the short run estimates inTable.

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