Economists have estimated the following transportation elastics .For each pair,explian possible reason why the elasticities differ.
a.Elasticity of demand for buses is 0.23 during peak hour and 0.42 during off-peak hours.
b.Elasticity of demand of buses is 0.7 in the short run and 1.5 in the long run.
c.Elasticity of demand for toll road 4.7 for low-income commuters and 0.63 high-income commuters.
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a.Elasticity of demand for buses is 0.23 during peak hour and 0.42 during off-peak hours.
b.Elasticity of demand of buses is 0.7 in the short run and 1.5 in the long run.
c.Elasticity of demand for toll road 4.7 for low-income commuters and 0.63 high-income commuters.