Q274
If lowering of fares reduces railway's revenues and increasing of fares increases, then the demand for rail travel has a price elasticity of
A.
Zero
B.
Greater than Zero but less than One
AnswerC.
One
D.
Greater than One
Answer: Option B
Solution
Answer: Option B
Solution:
If lowering of fares reduces railway's revenues and increasing of fares increases, then the demand for rail travel has a price elasticity of Greater than Zero but less than One.