The total operating revenues of a public transport, Macroeconomics

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The total operating revenues of a public transport

The total operating revenues of a public transportation authority are $100M while its total operatiing costs are $120M. The price per ride is $1, and the price elasticity of demand for transportation ia -0.4. The transportation authority has to eliminate its operating deficit.

What pricing policy should the transportation authority adopt? Why?

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Macroeconomics: The total operating revenues of a public transport

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Macroeconomics: The total operating revenues of a public transport

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