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
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