Question

When a public transit system (such as a subway or bus line) raises its fares, its total revenue may increase. This suggests that demand is: price unit-elastic. price-elastic. unstable. price-inelastic.

Answer 1

Answer:

Price Inelastic

Explanation:

Public transport systems are a necessity which consumers are unable to do away with easily. Therefore when prices are raised consumer habits remain the same. Inelastic refers to unchanging consumer habit even when prices change.