question archive If the demand for mass transit is inelastic, then increasing fares will increase mass transit revenues
If the demand for mass transit is inelastic, then increasing fares will increase mass transit revenues
Subject:EconomicsPrice:2.88 Bought3
If the demand for mass transit is inelastic, then increasing fares will increase mass transit revenues.
True
False
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True
The demand for a commodity is inelastic then o increasing the prices of the commodity there will not be a higher effect on the change quantity for the commodity. If the supplier increases the prices the consumers will not alter the consumption and will be willing to pay higher prices as well. This will increase the profits of the consumer from the market.
