Price Elasticity of Demand and Total Revenue; Income Elasticity and Cross-Price Elasticity Use the following information to answer question 3 to 5. - In Pioneer Ville, the price elasticity of demand for bus rides is 0.5. - The income elasticity of demand for bus rides is −0.1. - The cross-price elasticity for bus rides with respect to gasoline price (gasoline for household consumption) is 0.2. 3. (3 points) a. Is the demand for bus rides elastic or inelastic with respect to the price of a bus ride? Why? b. According to the given price elasticity, will an increase in bus fares increase the bus company's total revenue? Explain your answer. 4. (3 points) a. Describe the relationship between bus rides and gasoline according to the given information. Are bus rides and gasoline substitutes or complements? Why? b. If the price of gasoline increases by 10 percent with no change in the price of a bus ride, how will the number of bus rides change and how much is the percent change in quantity demand of bus rides? (Hint: apply the cross-price elasticity formula) 5. (3 points) a. If incomes increase by 5 percent with no change in prices, how will the number of bus rides change? Calculate the percent change in quantity demanded for bus ride. b. Is a bus ride a normal good or an inferior good, and why?