According to a news story about the bus system in the Lehigh Valley in Pennsylvania, Ridership fell

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According to a news story about the bus system in the Lehigh Valley in Pennsylvania, “Ridership fell 14 percent . . . after a 33 percent increase” in bus fares. Based on this information, is the demand for bus trips price elastic or price inelastic? Explain your answer in terms of the five determinants of price elasticity.

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Macroeconomics

ISBN: 9780135801741

8th Edition

Authors: Glenn Hubbard, Anthony Patrick O Brien

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