Please review and use the materials provided in the Harvard Case Study Readings for The Quest for
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Question:
Please review and use the materials provided in the Harvard Case Study Readings for “The Quest for Sustainable Public Transit Funding: SEPTA’s 2013 Capital Budget Crisis”. This paper provides sufficient data in Exhibits 8 and 9 to answer the Total Revenue, Subsidy and Elasticity Questions. Exhibits 5 and 6 offer insight into the demographic information. This is an analytic question that uses math for a decision making process.
Also, the elasticity equation you will need to use is:
Price Elasticity of Demand = (P/Q)times(Change in Q/Change in P)
You are provided different elasticity scenarios offered (based on price increases of between 5% and 20%)
- When reviewing Exhibits 5 and 6, what data stands out as the population that is more likely to use Public Transportation?
- Would Total Revenue increase or decrease if the per ride fares were increased by 5% or 20% and How much will they go up (this requires a numeric answer and you must show your work)?
- According to this analysis, can fare increases eliminate the State’s Operating Subsidy and why?
- What are the implications on fairness that these increases create?
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