1. Estimate the price elasticity of demand between 40p and 50p and between 50p and 60p. 2....
Question:
1. Estimate the price elasticity of demand between 40p and 50p and between 50p and 60p.
2. Was the 50p fare the best fare originally?
3. The company considers lowering the fare to 30p, and estimates that demand will be 8.5 million passenger miles. It will have to put on extra buses, however. How should it decide?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 91% (12 reviews)
1 The midpoint formula for price elasticity is DQ d averageQ d DPav...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Betty's Boutique is a small specialty retailer located in a suburban shopping mall. In setting the regular $36 price for a new spring line of blouses, Betty's added a 50 percent markup on cost. Costs...
-
Multiple Choice Questions: 1. An increase in demand will increase the price but not the quantity sold in a market if a. Supply is perfectly elastic. b. Supply is perfectly inelastic. c. Supply is...
-
Distinctive Designs, Inc., imports and distributes dress and sports watches. At the end of the company's fiscal year, brand manager Charlie Pace has asked you to evaluate sales of the sports watch...
-
The Illinois State University Alumni Association is having two Baseball Day events this year. The purpose of the events is to both foster relationships between ISU alums and to also raise money for...
-
JD, age 26, is a self-employed plumber. One month ago, he hired his brother, age 20, to help in the business. JD wants to accumulate a retirement fund and decides to adopt a 401(k) plan to fund his...
-
Why is it that a company can grow too fast? If Wise Acre Frozen Treats significantly increased its sales, why wouldnt its increased income provide more than enough cash to even out its cash flow?
-
Would it be desirable to have zero unemployment?
-
Drums, bins, boxes, and other containers that are used in the petroleum industry are sold by Holden Inc. One of the companys products is a heavy-duty, environmentally friendly, corrosion-resistant...
-
Multiply and simplify completely, including the elimination of all negative exponents: 4x4 5y5 5 5410 43x3 Enter your answers for the numerator and denominator separately in the boxes below. Answer:...
-
Flanagin Department Store is located near the Crystal Shopping Mall. At the end of the companys fiscal year on December 31, 2010, the following accounts appeared in its adjusted trial balance....
-
1. Think of some advertisements which deliberately seek to make demand less elastic. 2. Imagine that Sunshine sunflower spread, a well-known brand, is advertised with the slogan: It helps you live...
-
Calculate the price elasticity of demand on the above demand curve at a price of (a) 5; (b) 2; (c) 0.
-
An online buying club offers a membership for $300, for which you will receive a 10 percent discount on all brand-name items you purchase. How much would you have to buy to cover the cost of the...
-
USA FDA: Millions Of Pounds Of Rat Meat Sold As BonelessChicken Wings If you enjoy boneless chicken wings you may actually be eatingrat meat. The FDA says that as much as a million pounds of rat...
-
Two signals are spaced at 1,000 ft on an urban arterial. It is desired to establish the offset between these two signals, considering only the primary flow in one direction. The desired progression...
-
The Universal Orlando Resort is a theme park resort in Orlando, Florida. It is wholly owned by NBC Universal and its affiliates, and is the largest property operated by Universal Parks & Resorts....
-
Tolton, Inc. is just shy of hitting its operating income target. The manager, K.T. Tolton, decides to purchase inferior materials right before year end. The standard price for the materials is $14.00...
-
A person's weight, w, on a planet of radius d is given by w= kd, k> 0. where the constant k depends on the masses of the person and the planet. Your answer is incorrect. (a) A man weighs 180 lbs on...
-
Nissa owns a building (adjusted basis of $600,000 on January 1, 2016) that she rents to Len, who operates a restaurant in the building. The municipal health department closed the restaurant for three...
-
Three forces with magnitudes of 70pounds, 40 pounds, and 60 pounds act on an object at angles of 30, 45, and 135, respectively, with the positive x-axis. Find the direction and magnitude of the...
-
To the right are hypothetical production possibilities tables for New Zealand and Spain. Each country can produce apples and plums. Plot the production possibilities data for each of the two...
-
Suppose that a Swiss watchmaker imports watch components from Sweden and exports watches to the United States. Also suppose the dollar depreciates, and the Swedish krona appreciates, relative to the...
-
Explain why the U.S. demand for Mexican pesos is downward-sloping and the supply of pesos to Americans is upward-sloping. Assuming a system of flexible exchange rates between Mexico and the United...
-
Describe Japan in terms of abundance and scarcity of factors of production in broad terms as well as in terms of, for example, types of skills of the labor force. Relate the description of these...
-
Draw a correctly labeled short-run aggregate demand and supply graph showing the equilibrium real GDP and price level, labeled Y, and P1. a. Show the effect of depreciation of the domestic currency..
-
Why has the Treasury and the FED sold bonds in the past if not to borrow? Why does Kelton say that this is no longer relevant?
Study smarter with the SolutionInn App