A Local Transit Authority Charges $1 for a Bus Ride

question 450

Multiple Choice

A local transit authority charges $1 for a bus ride. An economics study suggests that in the price range from $0.50 to $1.50, the elasticity of demand for bus trips is 1.1. To increase its revenue, the transit authority should

• A) raise the fare.
• B) lower the fare.
• C) leave the fare as it is.

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Definitions:

Status Symbols

Material indicators that demonstrate a person’s social and economic position.

Social Mobility

The movement of individuals or groups within or between social strata in a society.

Intra-Generational Mobility

The movement of individuals within or between social classes and occupations over their lifetime, reflecting changes in their social and economic status.

Social Stratification

Social Stratification is the hierarchical arrangement of individuals or groups in society, often based on factors such as class, race, and gender, which affects people's access to resources and opportunities.