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Business, 21.09.2021 14:00 cbbentonam72
The Acmeville Metropolitan Bus Service currently charges $0.88$0.88 for an all-day ticket and is used by an average of 513513 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must, therefore, find a way to increase revenues. The bus company is considering increasing the ticket price to $0.99$0.99 . The marketing department's studies indicate this price increase would reduce usage to 363363 riders per day. Calculate the price elasticity of demand using the midpoint method for bus tickets to determine if the bus company should increase price or decrease price to increase revenues. Enter your answer as an absolute value and round it to two places after the decimal.
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The Acmeville Metropolitan Bus Service currently charges $0.88$0.88 for an all-day ticket and is use...
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