Amajor city was thinking about increasing its bus fares and commissioned a study to estimate the price elasticity of demand. the study estimated that elasticity was 0.4. what action should the city have taken to increase revenue from bus fares? a. increase faresb. decrease faresc. do not change farespart b: if the city examined the elasticity of bus fares again, what would they likely find? a. elasticity is now greater than 1b. elasticity is now less than 1c. elasticity is o

Special order carson manufacturing, inc., sells a single product for $36 per unit. at an operating level of 8,000 units, variable costs are $18 per unit and fixed costs $10 per unit. carson has been offered a price of $20 per unit on a special order of 2,000 units by big mart discount stores, which would use its own brand name on the item. if carson accepts the order, material cost will be $3 less per unit than for regular production. however, special stamping equipment costing $4,000 would be needed to process the order; the equipment would then be discarded. assuming that volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether carson should accept the special order. use a negative sign with answer to only indicate an income loss from special order; otherwise do not use negative signs with your answers.