Question: Currently, 1800 people ride a certain commuter train each day and pay $4 for a ticket. The number of people q willing to ride the

Currently, 1800 people ride a certain commuter train each day and pay $4 for a ticket. The number of people q willing to ride the train at price p is q = 600(5 - √p). The railroad would like to increase its revenue.

(a) Is demand elastic or inelastic at p = 4?

(b) Should the price of a ticket be raised or lowered?

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