Instructions Use this information to answer questions 17-30 17-30 30 The brice elasticity of the gasoline demand is 0.35. The price elasticity of demand of rail transit during rush hour is 0.15 and during off peak hours is 1.2. The cross elasticity of demand of rail transit during rush hour with respect to the price of gasoline is 0.5 and the cross elasticity of demand of rail transit during off peak hours with respect to the price of gasoline is 2. Moreover, the income elasticity of demand of rail transit during rush hour is 0.4 and the income elasticity of demand of rail transit during off peak hours is 0.7 Calculate the percent change in total revenue that would result from implementing the 10% fare raise during the gff-ak hosurs Pay attention to the negative sign, if you enter your answer as a positive number, you are arguing that total revenue would increase otherwise, you are arguing that total revenue would decrease. NOTE This is a numeric answer, no explanation is needed Type your answer.
Instructions Use this information to answer questions 17-30 17-30 30 The brice elasticity of the gasoline demand is 0.35. The price elasticity of demand of rail transit during rush hour is 0.15 and during off peak hours is 1.2. The cross elasticity of demand of rail transit during rush hour with respect to the price of gasoline is 0.5 and the cross elasticity of demand of rail transit during off peak hours with respect to the price of gasoline is 2. Moreover, the income elasticity of demand of rail transit during rush hour is 0.4 and the income elasticity of demand of rail transit during off peak hours is 0.7 Calculate the percent change in total revenue that would result from implementing the 10% fare raise during the gff-ak hosurs Pay attention to the negative sign, if you enter your answer as a positive number, you are arguing that total revenue would increase otherwise, you are arguing that total revenue would decrease. NOTE This is a numeric answer, no explanation is needed Type your answer.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Instructions
Use this information to answer questions 17-30
17-30
30
The price elasticity of the gasoline demand is 0.35. The price elasticity of demand
of rail transit during rush hour is 0.15 and during off peak hours is 1.2. The cross
elasticity of demand of rail transit during rush hour with respect to the price of
gasoline is 0.5 and the cross elasticity of demand of rail transit during off-peak
hours with respect to the price of gasoline is 2. Moreover, the income elasticity of
demand of rail transit during rush hour is 0.4 and the income elasticity of demand
of rail transit during off peak hours is 0.7.
Calculate the percent change in total revenue that would result from implementing
the 10% fare raise during the gff-geak hours. Pay attention to the negative sign, it
you enter your answer as a positive number, you are arguing that total revenue
would increase otherwise, you are arguing that total revenue would decrease.
NOTE: This is a numeric answer, no explanation is needed.
Type your answer.
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