How will the quantity demanded of bus rides change

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Reference no: EM13691093

Given

Price elasticity of demand for bus rides = 0.5

Income elasticity of demand for bus rides = -0.1

Cross-price elasticity of demand for bus rides with respect to gasoline = 0.2

a: would an increase in price of a bus ride increase or decrease total revenue? why?

b: if the price of gas increased b 10%(holding the demand for gas constant) how will the quantity demanded of bus rides change (direction and %)?

c what does this indicate about the relationship of gasoline and bus rides in consumption?

Reference no: EM13691093

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