In the chapter, we calculated the likely long-run change in revenue if New York City were to raise mass transit fares from $2.00 to $2.50. Use the same procedure to calculate the short-run impact of...

In the chapter, we calculated the likely long-run

change in revenue if New York City were to raise

mass transit fares from $2.00 to $2.50. Use the

same procedure to calculate the short-run impact of

this fare hike. This time, use an elasticity of 0.35,

which is in the middle of the short run estimates in

Table 3.