A municipal transport authority reports that a 16% increase in the price of monthly subway passes leads to an 8% decrease in the quantity of passes demanded by adult commuters, and a 20% decrease in the quantity demanded by student commuters.
From this information, it can be concluded that:
for student commuters, monthly subway passes are an inferior good.
demand for monthly subway passes is price inelastic for both commuter groups.
adult commuters purchase a larger absolute volume of monthly subway passes than student commuters.
the demand of student commuters for monthly subway passes is price elastic, while that of adult commuters is price inelastic.
