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Suppose Via Rail asked government authorities for permission to increase its commuter rates by 20 percent. The railroad argued that declining revenues
made this rate increase essential. Opponents of the rate increase contended that the railroad's revenues would fall because of the rate hike. It can be
concluded that
Multiple Choice
the railroad felt that the demand for passenger service was elastic and opponents of the rate increase felt it was inelastic.
both groups felt that the demand was inelastic but for different reasons.
the railroad felt that the demand for passenger service was inelastic and opponents of the rate increase felt it was elastic.
both groups felt that the demand was elastic but for different reasons.
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Suppose Via Rail asked government authorities for permission to increase its commuter rates by 20 pe...
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