What impact would you expect on the ridership

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The Subway fare in your town has just been increased from a current level of .50 cents to a 1.00 per ride. As a result, the transit authority notes a decline in ridership of 30%. a. Compute the price elasticity of demand for subway rides. b. If the transit authority reduces the fare to back to .50 cents, what impact would you expect on the ridership? Why?

Reference no: EM13213261

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