# high school economics - elasticity

posted by .

What can you conclude about elasticity of demand for rail service:

Rail service has always been a losing proposition in Canada. Regardless of how much we raise our prices, we will never earn enough revenue to earn a profit.

This is confusing because I don't know if they are saying if revenue is actually going up or not. If it is, then it's inelastic for sure.

• high school economics - elasticity -

## Similar Questions

1. ### Evaluating elasticity

The demand function for a certain item is x = 35(sqrt(32-p^2)) ---Evaluate the elasticity at 5. E(5)= I don't know how to find elasticity, so i don't know how to start this problem. If someone could explain elasticity i think that …
2. ### economics

If the demand for a good has unitary elasticity, or elasticity is −1, it is always true that an increase in its price will lead to more revenues for sellers taken as a whole.
3. ### Microeconomic

The Urban Transit Authority receives the following two pieces of expert advice: 1. “You should cut rail fares in order to encourage greater use. Raising fares will mean fewer customers and lower revenue.” 2. “You cannot afford …
4. ### managerial economics

4. The equation for a demand curve has been estimated to be Q = 100 – 10P + 0.5Y where Q is quantity, P is price, and Y is income. Assume that P = 7 and Y = 50. a. Interpret the equation. b. What is price elasticity at P = 7 and …
5. ### economics

suppose the demand curve for a product is given by Q=10-2P+Ps1,where P is the price of the product and Ps is the price of a substitute good. the price of the substitute good is \$2.00. a)suppose P=\$1.00, what is the price elasticity …
6. ### Economics

Which of the following firms caould raise prices and expect an increase in revenues?
7. ### Microeconomics

The producer of X is contemplating a price change and has asked for your advice. After some empirical investigation, you conclude that the price elasticity of demand for X is 1.25. As an economist, what would you advise the producer …
8. ### Managerial Economic

Mr. Smith has the following demand equation for a certain product: Q = 30 - 2P. a. At price of \$7, what is point elasticity?
9. ### Economics

1.calculate the price elasticity of demand when the price was increased from R25 to R40 ?
10. ### Economics

Is price increase the correct decision to raise revenue?

More Similar Questions