7. A local transit authority notices that when they raise bus ticket prices by 10%, their total revenue from ticket sales decreases. What does this outcome indicate about the price elasticity of demand for bus rides in this city?
(A) Demand is elastic, meaning the percentage change in quantity demanded is larger than the percentage change in price.
(B) Demand is unit elastic, meaning the percentage change in quantity demanded exactly equals the percentage change in price.
(C) Demand is inelastic, meaning the percentage change in quantity demanded is smaller than the percentage change in price.
(D) Demand is perfectly inelastic, meaning consumers will buy the same amount regardless of price.