Economists have estimated the following transportation elasticities. For each pair, explain possible reasons why the elasticities differ.

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a. Elasticity of demand for buses is 0.23 during peak hours and 0.42 during off-peak hours.

b. Elasticity of demand for buses is 0.7 in the short run and 1.5 in the long run.

c. Elasticity of demand for toll roads is 4.7 for low-income commuters and 0.63 for high-income commuters.

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Microeconomics

ISBN: 9781260507140

11th Edition

Authors: David Colander

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Question Posted: Mar 12, 2024 06:02 AM

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Economists have estimated the following transportation elasticities. For each pair, explain possible reasons why the elasticities differ.

Question:

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SOLUTION a Elasticity of demand for buses is lower during peak hours than offpeak hours During peak ...View the full answer

Microeconomics

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