Richard Voith Estimated the Price Elasticity of Demand for Round-Trip

question 53

Multiple Choice

Richard Voith estimated the price elasticity of demand for round-trip rail fare to be 0.62. If fares rose by 30 percent, one would expect the quantity of round-trip tickets purchased to:

• A) rise by 18.6 percent.
• B) fall by 18.6 percent.
• C) rise by 48.4 percent.
• D) fall by 48.4 percent.

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Definitions:

Conscientiousness

A personality trait characterized by diligence, carefulness, and the desire to do a task well, often associated with high levels of responsibility.

Big Five Personality Traits

are five broad dimensions of personality used to describe human character traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Responsible, Dependable, Careful

describes attributes of an individual who is reliable, can be trusted to complete tasks, and takes precautions to avoid mistakes.

Projection

The act of estimating or predicting future trends based on current or historical data.