Get more exposure for your business with the new HTML5 flipbooks. Learn more

ECO 204 Week 1 DQ 1 Elasticity of Demand

rmamdhier1


Published on January 25, 2016

www.uophelp.com Elasticity of Demand. Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their fares 10 percent, and they anticipated that revenues would increase by about 10 percent as a result. However, when the commissioner granted the 10 percent increase, revenues increased by only about 5 percent. What can you infer about the elasticity of demand for taxicab rides? What were taxicab drivers assuming about the elasticity of demand? Respond to at least two of your fellow students’ postings.

Similar publications