R and 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 sales increased from $325,000 per month to $334,750 on average. 3. How should this condition be interpreted? * a. The ticket of R and B Railroad is price elastic, passengers react strongly to the change in the price of the ticket b. The ticket of R and B Railroad is price elastic, passengers react weakly to the change in the price of the ticket c. The ticket of R and B Railroad is price inelastic, passengers react strongly to the change in the price of the ticket
R and 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 sales increased from $325,000 per month to $334,750 on average.
3. How should this condition be interpreted? *
a. The ticket of R and B Railroad is price elastic, passengers react strongly to the change in the price of the ticket
b. The ticket of R and B Railroad is price elastic, passengers react weakly to the change in the price of the ticket
c. The ticket of R and B Railroad is price inelastic, passengers react strongly to the change in the price of the ticket
d. The ticket of R and B Railroad is price inelastic, passengers react weakly to the change in the price of the ticket
4. How much is the percentage change in the quantity demanded of the ticket of R and B Railroad? Use a number, no decimal values, no commas, no space, no signs. *
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