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You are the CEO of a bus company. Now the company is charging $5 per trips for everyone who takes the bus. You want to increase the total revenue of the bus company. Use the demand schedules below to answer the following questions.
a) What is total revenue for Adult group? What is total revenue for child group?
b) Which group has a more elastic demand for bus service?
c) Which market has the more inelastic demand?
d) What is the elasticity of demand between the prices of $5 and $2 in the adult market? Is this elastic or inelastic?
e) What is the elasticity of demand between $5 and $2 in the children's market? Is this elastic or inelastic?
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