Cap city metro decides to increase bus fare rates

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1) Chelsey is a mother of two and buys her kids\' favorite, Kraft Macaroni and Cheese, when the price of Kraft is the same as the price of the store brand stuff. But when there is any price difference, she buys the cheaper product. 2) Doug has diabetes as a result of too much candy and soda. He has to take insulin to control his blood glucose levels. Over the range of prices they are likely to face, he and other diabetics continue to purchase insulin. 3) Contain Yourself!, a tupperware depot, raises the price of its signature \"lunchbox\" tupperware from $3.00 to $4.00. As a result, sales of its tupperware drop from 20,000 to 15,000. 4) Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5. 5) Cap City Metro decides to increase bus fare rates by 10%. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to 61,000 riders a day.

The Options are: Inelastic, Elastic, Perfectly Inelastic, Perfectly Elastic, and Unit Elastic

Reference no: EM13894113

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Cap city metro decides to increase bus fare rates : Chelsey is a mother of two and buys her kids\' favorite, Kraft Macaroni and Cheese, when the price of Kraft is the same as the price of the store brand stuff. But when there is any price difference, she buys the cheaper product. Cap City Metro decide..

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