Say the Bus Authority in Your City Increased the Typical

Multiple Choice

Say the bus authority in your city increased the typical bus fare from $1.00 to $1.50 and that due to this increase total revenue increased by 20%. Based on this we know that the price elasticity of bus rides in your neighborhood is (assume demand curve is linear) :

A) 0.4.
B) 0.8.
C) 1.
D) 1.5.