ECO100Y1 Lecture : Q1 Transit Fares (Medium)
31 views1 pages
Get access
Grade+
$40 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
10 Verified Answers
Class+
$30 USD/m
Billed monthly
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
7 Verified Answers
Related textbook solutions
Related Documents
Related Questions
In this chapter, we calculated the likely long-run change in revenue in NYC were to raise mass transit fares from $2.00 to $2.50. Use the same procedure to calculate the short-run impact of this fare hike. This time, use an elasticity of 0.35, which is in the middle of the short-run estimates in the table.
Good
|
Area of study | Short-run elasticity | Long-run elasticity |
Gas | United States | 0.26 | 0.58 |
Britain | 0.25 | 0.6 | |
Electricity | US-- New England | 0.19 | 0.33 |
US Pacific Coast | 0.19 | 0.25 | |
Oil | US | 0.06 | 0.45 |
France | 0.07 | 0.57 | |
Japan | 0.07 | 0.36 | |
Denmark | 0.03 | 0.19 | |
Mass Transit | Multi-country | 0.2 to 0.5 | 0.6 to 0.9 |