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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