In 2005 the monorail in a certain city charged $2 per ride and had an average ridership of about 27,000 per day. in december 2005 the monorail company raised the fare to $4 per ride, and average ridership in 2006 plunged to around 17,000 per day.
(a)
use the given information to find a linear demand equation. (p is the cost in dollars.)
q(p) =
(b)
give the units of measurement and interpretation of the slope.
rides per day per dollar dollars per day per ride days per dollars per ride dollars per ride per day
interpret of the slope.
as you increase the days, the price increases. as you increase the number of riders, the price increases. as you increase the price, the ridership decreases. as you increase the price, the ridership increases.
(c)
what would have been the effect on ridership of raising the fare to $5 per ride?
ridership would rise. ridership would fall. ridership would be unaffected.