Eco 2201 microeconomics department of business

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ECO 2201 Microeconomics Department of Business Economics Lesson 3.1 Price Elasticity of Demand 29 56 ìModified from ColanderìIdentify which of the two products/services has larger priceelasticity of demand.a)Bus service during peak hour and during off-peak hours?Example 4: Determinants of ε D
ECO 2201 Microeconomics Department of Business Economics Lesson 3.1 Price Elasticity of Demand 30 b)Bus service in the short run and in the long run? c)Toll roads for low-income commuters and for high-incomecommuters? Example 4: Determinants of ε D 58 ìIf ABAC would like to increase revenue from tuition fees, whoshould it charge higher tuition fees: freshmen or seniors?Exercise 5: εDand Total Revenue59

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