You Have Been Hired by the City to Determine Whether

question 140

Essay

You have been hired by the city to determine whether or not an increase in the price of tickets for the mass transit system would raise system revenues. The debate has been heated and the city council seems to be divided. One side argues that in order to increase revenues from the transit system, prices must be increased. The opposing side argues that a price increase at this time will lower revenues. What assumptions are each side making about the price elasticity of demand, and how might you determine the best course of action?

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Definitions:

Energetic Performance

The level of vigor and enthusiasm displayed by individuals or groups in the execution of tasks.

Team Norm

Shared guidelines or rules of behavior that a team follows to increase efficiency and foster a positive environment.

Behavior Guides

Frameworks, principles, or rules designed to influence or direct individuals’ actions and decisions in specific situations.

Team Personality

The collective personality traits, attitudes, and behaviors that characterize a team and influence its functioning and performance.