The local community bus service, which is a monopoly, charges $2.00 for a one-way fare. The city council is thinking of raising the fare to $2.50 but expects it to generate less than 25% more revenue. The council has asked for your advice as a student of economics. The council predicts that raising the price by 25% will raise revenues by less than 25%. Which of the following is true? Choose one:

A. The council hasn't taken into account either the output effect or the price effect.
B. The council has taken into account the price effect but not the output effect.
C. The council has taken into account both the price effect and the output effect.
D. The council has taken into account the output effect but not the price effect. Part 2 (1 point) Therefore, the council has increase in revenue.

$527.7.if the following was the question  $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

The law of supply and demand