If the Managers of the Bus System Found That Revenues

question 255

True/False

If the managers of the bus system found that revenues increase when fares are raised, they would conclude that price elasticity demand for subway service is inelastic.

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Definitions:

Budget Line

A graphical representation showing all possible combinations of two goods that can be purchased with a given income.

Indifference Curves

Graphical representations used in economics to show the different combinations of two goods that give a consumer equal satisfaction and utility.

Indifference Curve

A graph showing different combinations of two goods between which a consumer is indifferent, reflecting preferences and trade-offs.

Total Utility

The cumulative satisfaction or value a consumer receives from consuming a particular quantity of goods or services.