A Local Transit Authority Charges $1 for a Bus Ride

question 406

Multiple Choice

A local transit authority charges $1 for a bus ride. An economics study suggests that in the price range from $0.50 to $1.50, the elasticity of demand for bus trips is 1.2. To increase its revenue, the transit authority should

• A) leave the fare as it is.
• B) raise the fare.
• C) lower the fare.
• D) charge $1.20.

---

Definitions:

Chromosome Disorder

A genetic condition caused by abnormalities in the number or structure of chromosomes, often leading to developmental issues or health problems.

Down Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21, characterized by physical growth delays, characteristic facial features, and intellectual disability.

Prader-Willi Syndrome

A genetic disorder characterized by a range of physical, mental, and behavioral problems including a constant sense of hunger.

Middle Adulthood

A period in human development that typically covers the ages from 40 to 65, characterized by physical, psychological, and social changes.