The total operating revenues of a public transportation authority are
$100 million while its operating cost are $120 million.  The price of
a ride is $1 and the price elacity of demand for public transportation
as been estimated to be -0.4. By law, the public transportation
authoriy must take steps to eliminate the operating deficit.  A.  What
pricing policy should the transportation authory adopt? why? b. What
price per ride must the public transportation authoriy charge to
eliminate the deficit if it cannot cut cost?