You are considering a pricing strategy for a bus company. The economy is heading into a recession and the company is running at loss. Your local rail service provider has announced an increase in rail fares. How (if at all) you use the following information concerning the elasticity of bus travel with respect to varius variables to inform your decision on price.

I would raise the bus fares even though the Price elasticity of demand is elastic. Because, as the cross price elasticity of demand with respect to rail fares is also big, the raise in the rail fares will make the demand less elastic and I can earn money by increasing the prices.