Disaggregating a Consumer's Response to a Price Change
A city's transit authority lowers the price of a monthly bus pass. In response, a specific commuter's total monthly purchase of bus passes remains unchanged. An economic analysis estimates that the increase in the commuter's purchasing power from this lower price, if it were given as a cash bonus instead, would have led them to buy 0.5 fewer bus passes per month. Based on this, what is the change in quantity purchased that is attributable only to the bus pass now being cheaper relative to other goods? Provide the numerical value and show your calculation.
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CORE Econ
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Economics
Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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