Here is a real world, real number example, from Philadelphia. In fiscal year 1990, SEPTA raised their fares in two steps from $1.15 to $1.50, the number of riders decreased by 6%. Since the increase in fares was 30%, this would give an approximate elasticity of 6/30=0.2. This is only approximate, since some other things were changing at the same time. In particular, SEPTA claimed that the ridership would have decreased by 3.5% just because of population decrease. That would leave 2.5% decrease because of the fare increase, and that would give an elasticity of 2.5%/30%=0.083. In any case, it is clear that the elasticity of demand for demand for SEPTA services in the city is considerably less than one. (Figures mostly from the Philadelphia Inquirer, Oct. 28, 1990, pp. 1B, 4B).
