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Pricing policy that should adopt by transportation authority

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Reference no: EM13196627

The total operating revenues of a public transportation authority are $100M while its total operatiing costs are $120M. The price per ride is $1, and the price elasticity of demand for transportation ia -0.4. The transportation authority has to eliminate its operating deficit. 


What pricing policy should the transportation authority adopt? Why?

Reference no: EM13196627

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