Band B Railroad decided to reduce their fares to see if it would help their business. They reduced their ticket prices by 25 per cent on average and their revenues increased from 5325.000 per month to $332.000 on average Calculate the PED and comment on the PED.

Band B Railroad decided to reduce their fares to see if it would help their business. They reduced their ticket prices by 25 per cent on average and their revenues increased from 5325.000 per month to $332.000 on average Calculate the PED and comment on the PED.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter2: The One Lesson Of Business

Section: Chapter Questions

Problem 2.1IP

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