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Calculate the effect on the revenue

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Reference no: EM131074287

A transit company estimates that the cross elasticity of demandbetween its fast express bus and its ordinary bus is 2.

Calculate the effect on the revenue received from the express service if theprice of the ordinary bus service is reduced from $75 to $50 whilethe price of the express bus service remains the same.

Reference no: EM131074287

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