question archive Assume that the price of a ride on the Southeast Pennsylvania Transit Authority (SEPTA) is $2, and that 1 million people ride SEPTA each day
Assume that the price of a ride on the Southeast Pennsylvania Transit Authority (SEPTA) is $2, and that 1 million people ride SEPTA each day
Subject:EconomicsPrice:2.88 Bought3
Assume that the price of a ride on the Southeast Pennsylvania Transit Authority (SEPTA) is $2, and that 1 million people ride SEPTA each day. To help balance a budget shortfall, SEPTA raises its price by 50 per ride. The first day of the tax, ridership falls to 800,000. (Hint: In what follows, use the arc-elasticity formula.)
a. As of the first day of the new price, has the policy increased SEPTA revenue?
