Zero
Greater than Zero but less than One
One
Greater than One
✅ The correct answer is B.
If lowering of fares reduces railway’s revenues and increasing of fares increases, then the demand for rail travel has a price elasticity of Greater than Zero but less than One.
If lowering of fares reduces railway’s revenues and increasing of fares increases, then the demand for rail travel has a price elasticity of Greater than Zero but less than One.