Answer:
2.77
the bus company should decrease price to increase revenues.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
percentage change in price = 1.21 / 0.99 - 1 = 0.222 = 22%
Percentage change in quantity demanded = 169 / 433 = -0.6097 = - 60.97%
Elasticity of demand = 60.97% / 22% = 2.77
Demand is elastic, so if price in reduced, there would be a rise in quantity demanded that would exceed the rise in price. This would increase revenues
Answer:
The money you pay in taxes goes to many places. In addition to paying the salaries of government workers, your tax dollars also help to support common resources, such as police and firefighters. Tax money helps to ensure the roads you travel on are safe and well-maintained. Taxes fund public libraries and parks.
Answer:
c. a significant amount of market power
Explanation:
Cross price elasticity measures the responsiveness of quantity demanded of a good to the changes in price of another good.
If the cross price elascitiy is postive, the goods are subsituites.
If the cross price elasticity is negative, the goods are complementary goods.
If the cross price elasticitiy is low the firm has market power. It means that it's consumers do not change the quantity demanded when the price of the good changes
If the cross price elasticitiy is high, the market has low market power.
I hope my answer helps you.
Answer:
8 hours is required for both companies to cost the same
Explanation:
given data
company A materials and equipment = $220
company A labor = $45 per hour
company B materials and equipment = $300
company B labor = $35 per hour
to find out
how many hours of labor required
solution
total cost of company A = 220 + 45 h
total cost of company B = 300 + 35 h
so we can say
total cost of company A = total cost of company B
220 + 45 h = 300 + 35 h
h = 8
so 8 hours is required for both companies to cost the same
Answer:
Check Explanation.
Explanation:
Note that the production function of bother country = Y=F(K,L) = K L c : k^1/2 L^1/2.
Thus Y/L = b; b = k^1/2 L^1/2/ L.
b = k^1/2.
From the question we are given that L = 6% = 0.06.
Country A saves 15% = 15/100 = 0.15 and country B saves 23% = 23/100 = 0.23.
For country A,
(a). the steady state;
∆k = 0 = y - dk.
0 = 0.15 × k^1/2 - 0.06k.
K^1/2 = 2.5, k* = 6.25
(b). y = K^1/2 = (6.25)^1/2.
y* = 2.5
(c). C = 2.5 - (0.15 × 2.5) = 2.5 - 0.375.
C* = 2.125.
Then, for COUNTRY B.
(a). ∆k = 0 = y - dk.
0 = 0.25 × k^1/2 - 0.06k.
K^1/2 = 4.167, k* = 17.36
(b). y = K^1/2 = (17.36)^1/2.
y* = 4.167.
(c). C = 4.167 - (0.25 × 4.167) = 2.5 - 0.375.
C* = 3.127.
C* = 2.125.
