If most passenger trains operate far below full capacity and demand is ____, reducing travel fares would be likely to increase total revenue
a. inelastic
b. unit elastic
c. unit inelastic
d. elastic
d
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Costs that spill over to third parties are called
A) opportunity costs. B) external costs. C) variable costs. D) public costs.
If the interest rate fell to zero, would that necessarily stimulate the economy?
What will be an ideal response?
When an exchange rate is established as a fixed peg, active intervention may be required to maintain the target-pegged rate
a. True b. False Indicate whether the statement is true or false
Which of the following describes a situation in which demand must be inelastic?
a. The price of vitamins rises by 10 cents, and quantity of vitamins demanded falls by 50. b. The price of vitamins rises by 10 cents, and total revenue rises. c. A 20 percent increase in the price of vitamins leads to a 20 percent decrease in the quantity of vitamins demanded. d. Total revenue does not change when the price of vitamins rises. e. Total revenue decreases when the price of vitamins rises.