Suppose the Price of a Bus Ticket Rises from $2

question 110

Multiple Choice

Suppose the price of a bus ticket rises from $2.75 to $3 and the number of tickets sold falls from 10 000 to 8500, the total revenue test:

• A) shows a decrease in total revenue.
• B) cannot be calculated.
• C) shows no change in total revenue.
• D) shows an increase in total revenue.

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Definitions:

Subsidies

Financial support provided by governments to organizations, businesses, or individuals, often to support economic activities deemed beneficial or necessary.

Basic Economic Needs

Fundamental requirements including food, shelter, and clothing that must be met to sustain life and health.

Poverty

The state of having insufficient financial resources or access to necessities of life such as food, clean water, and shelter.

Unbalanced Diet

A diet lacking in the appropriate mix of nutrients to maintain health.