Calculate the arc price elasticity

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A bus company is charging a flat rate of $0.50 per ride to any part of the city, and has patronge of 500,000 each day. It was then decided that the fare will be raised to $0.60 per ride, and estimated that 470,000 will now ride the bus each day. Calculate (a) The arc price elasticity, and (b) The possible total gain or loss in total revenues per day.

Reference no: EM13998838

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