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Question: research provided to the management of a bus company which...

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Research provided to the management of a bus company, which provides an express bus service from the airport to the city centre, suggests that the absolute value of price- elasticity of demand for its service is 0.9 This implies that if the company were to lower the price of a bus ticket by 10% (a) Ticket revenue would rise by 9% (b) Ticket revenue would fall by 9% (c) The number of bus tickets sold would increase by 0.9% (d) The number of bus tickets sold would increase by 990 X

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