Answer to Question #67248 in Other Economics for Hafiy
2) Price for the subway ride or bus ride needs to be increased or decreased in order to increase the total revenue.
3) How about the price of taxi in order to increase total revenue
2) Subway ride service has very little substitutes. That is why, an increase of its price will unlikely to decrease the demand. Therefore, total revenue will increase with an increased price for it.
3) If a wide network of local municipal transport in place, taxi service has significant elasticity. That is why, rise of price for taxi service will likely to provoke less revenue.
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