The director of OC Transpo,in Ottawa (their public transit authority)recently stated,"The last seven times we increased bus fares,revenues dropped." This remark suggests that the demand for bus service is elastic.

Question

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The statement by the director of OC Transpo suggests that there is a strong correlation between the increase in bus fares and the decrease in revenue, indicating that consumers are sensitive to price changes and will adjust their demand accordingly. This is a characteristic of elastic demand, where small changes in price can have a significant impact on demand. Therefore, the answer is A.

The Director of OC Transpo,in Ottawa (Their Public Transit Authority)recently