Question: The current price for a high speed train ticket from Toulouse to Barcelona is 30 euros. Trains are currently operating at 80% capacity. Demand is

The current price for a high speed train ticket from Toulouse to Barcelona is 30 euros. Trains are currently operating at 80% capacity. Demand is linear and downward sloping, and the estimated elasticity is - 1.5. Which of the following is true? decreasing the price by a small amount would increase revenue increasing the price by a small amount would increase revenue reducing capacity by a small amount would increase revenue None of the options is necessarily true

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