Question

Suppose you are on a committee seeking to increase revenue from your city's bus system. if demand is _______, you would recommend raising the fare.​

Answer 1

If demand is "inelastic", you would recommend raising the fare.

A demand is inelastic in such circumstance when the interest for an item does not show any increment or reduction correspondingly with a fall or ascend in its cost. From the provider's perspective, this is profoundly attractive on the grounds that cost and aggregate income are straightforwardly related; an expansion or increase in cost builds add up to income regardless of a fall in the amount requested.