If the Bus Fare of a City Increases from $1

question 106

Multiple Choice

If the bus fare of a city increases from $1.00 to $1.25 per ride and as a result total revenue increases, then we know that

• A) percentage change in fare is less than percentage change in number of rides.
• B) percentage change in fare is greater than percentage change in number of rides.
• C) percentage change in fare is equal to the percentage change in number of rides.
• D) it is impossible to tell.

---

Definitions:

Merchandising Value Chains

The sequence of activities and processes a product undergoes from production to being sold to the end consumer in retail.

Service Firm

A business that primarily offers intangible products, such as expertise or services, rather than physical goods.

Overhead Cost

Overhead Cost comprises indirect expenses related to the overall operations of a business, including costs not directly tied to specific products or services.

Professional Labour Costs

Expenses associated with employing specialized professionals, such as engineers, lawyers, or doctors, including salaries, benefits, and training costs.