The price elasticity of demand for urban transit fares has been estimated to lie between -0.1 and -0.6. Based on these results, what is the economic argument for raising transit fares? What political arguments might local governments and transit authorities encounter in opposition to these economic arguments?

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter5: Price Elasticity Of Demand And Supply
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b) The price elasticity of demand for urban transit fares has been estimated to lie
between -0.1 and -0.6. Based on these results, what is the economic argument for raising
transit fares? What political arguments might local governments and transit authorities
encounter in opposition to these economic arguments?

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