Answer to Question #273603 in Microeconomics for Jimmy

Question

Michaela spends R10 in the morning on bus fare from her house in Mitchells Park to MANCOSA. In the afternoon the same trip costs R9.50. the fact that the bus fare is more expensive during rush hour and less expensive in the afternoon implies that the demand for the bus ride in the morning is……………………while during the afternoon the demand for the bus is…………………….

a) less inelastic, more elastic

b) elastic, inelastic

c) unit elastic, inelastic

d) perfectly elastic, perfectly inelastic

Answer 1

 b) elastic, inelastic