A Local Transit Authority Charges $1 for a Bus Ride

Multiple Choice

A local transit authority charges $1 for a bus ride. An economics study suggests that in the price range from $0.50 to $1.50, the elasticity of demand for bus trips is 1.1. To increase its revenue, the transit authority should

A) raise the fare.
B) lower the fare.
C) leave the fare as it is.