If the bus fare of a city increases from $1.00 to $1.10 per ride and as a result total revenue increases, then we know that
A) percentage change in fare is less than percentage change in number of rides.
B) percentage change in fare is greater than percentage change in number of rides.
C) percentage change in fare is equal to the percentage change in number of rides.
D) it is impossible to tell.

Question

Quizplus · Accepted Answer

If the total revenue increases after the fare increase, it means that the increase in revenue due to the higher fare is greater than the decrease in revenue due to fewer people taking the bus. This implies that the percentage change in fare is greater than the percentage change in number of rides.

If the Bus Fare of a City Increases from $1