The price of a bus ride decreases, but the total revenue of the bus company decreases. The demand for bus rides is
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CUET-PG 2018 Question 65: Demand theory and elasticity
Answer and worked solution
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Demand theory and elasticity has come up 161 times in 7 exams since 2004.
What this question tests
This question is on Price elasticity of demand, part of Demand theory and elasticity in Microeconomics.
How responsive quantity is to price, at a point, along a linear curve, and for constant-elasticity demand.
TestStop has 41 past-paper questions on this subtopic; the nearest in year are below.
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Question from the CUET-PG 2018 paper. Solutions are TestStop's own. Not affiliated with or endorsed by any examination authority.