The director of River City Public Transport recently stated,"The last seven times we increased bus fares,revenues dropped." This remark suggests the demand for bus service is elastic.

Question

Quizplus · Accepted Answer

If increasing prices leads to a decrease in revenue, it is indicative of an elastic demand, meaning that consumers are sensitive to changes in price and will look for alternatives or reduce their usage when prices go up.

The Director of River City Public Transport Recently Stated,"The Last