Suppose subway ridership in New York City declined by 4

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Suppose subway ridership in New York City declined by 4.3 percent after a fare increase of 25 cents to $1.50.

Using the midpoint method, an estimate of the price elasticity of demand for subway rides is _____.

True or False: According to the estimate, the Transit Authority's revenue rises when the fare increases.

a. True

b. False