I am completely lost in working this problem.

Question

1.
The total operating avenues of a public transportation authority are$100 million while its operating costs are $120 million. The price of a ride is $1, and the price of elasticity of demand has been estimated to be -0.4. By law, the public transportation authority must take steps to eliminate its operating deficit.(a) What pricing policy should the transportation adopt? (b) What price per ride must the public transportation authority charge to eliminate the deficit if it cannot reduce cost?

Note:P7(b) Suggestion- increase the price of a ride from $1 to be $1.50, a 50% increase in price. Given the elasticity of demand of -0.4, calculate the percentage change in the rides (the original rides are 100 million=$100 million/$1). Then use the total new rides time the new price of $1.50 to obtain the new total revenue.