As a result of an increase in public transit fares in New York, the New York Times reported: "Comparing September, 1975, and September, 1974, the M

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As a result of an increase in public transit fares in New York, the New York Times reported: "Comparing September, 1975, and September, 1974, the M.T.A. (Metropolitan Transit Authority) reported these changes on its transit and commuter facilities: Bus ridership declined 12.7 percent to 46.2 million from 53.0 million . . . Subway ridership declined 5.2 percent to 79.3 million from 83.65 million . . . . The increase in the transit fare from 35 to 50 cents produced a 33.5 percent gain in subway revenue in September compared with a year ago . . . and an 18.4 percent increase in bus revenue . . ." 5i. Comparing 1974 to 1974 and assuming that only price changed over this period, the demand for bus transportation in New York is

A. Elastic because ridership fell in response to the price increase

B. Perfectly inelastic, because bus riders have no other alternative than to ride the bus

C. Inelastic, because bus revenue increased as a result of the fare increase

D. 2.6

E. 1.0 5ii.

Again comparing 1975 to 1974 and assuming no other changes, a comparison of the demand for buses and subways shows that

A. The demand for subway rides is relatively more price inelastic than the demand for bus rides

B. Both the demand for bus and subway rides is price elastic

C. Subway riders are more sensitive to fare changes than bus riders

D. The demand for bus rides is relatively less price elastic than the demand for subway rides

E. None of the above is correct.