If New York City Expects That an Increase in Bus

question 138

Multiple Choice

If New York City expects that an increase in bus fares will raise mass transit revenues, it must think that the demand for bus travel is:

• A) elastic.
• B) unit elastic.
• C) inelastic.
• D) perfectly inelastic.
• E) 10.

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Definitions:

Cash Flow Estimation

The process of predicting the amount of money that will move in and out of a business in a future period.

Net Working Capital

The difference between a company's current assets and current liabilities, indicating short-term financial health.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Accounts Payable

Liabilities of a business that represent amounts owed to creditors for goods and services received but not yet paid for.