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Over [174]
3 years ago
6

The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: "There were nearly four millio

n fewer riders in December 1995, the first full month after the price of a token increased 25 cents to $1.50, than in the previous December, a 4.3 percent decline."
a. Use these data to estimate the price elasticity of demand for subway rides.

b. According to your estimate, what happens to the Transit Authority's revenue when the fare rises?

c. Why might your estimate of the elasticity be unreliable?
Business
1 answer:
tester [92]3 years ago
6 0

Answer:

Please see attachment

Explanation:

Please see attachment

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The price of coffe beans use to make coffee has decreased. At the same time, the price of cream (a compliment good) has increase
Sonbull [250]

Answer:

The correct answer is:

Equilibrium price will decrease; the effect on quantity is ambiguous. (D)

Explanation:

First, note that if the price of coffee beans, used in the manufacture of coffee decreases, the price of coffee sold to consumers will decrease, because it takes a lesser amount in manufacturing than it used to, therefore this reduction in manufacturing costs is reflected in the selling price.

Next, it is hard to tell whether this reduction in equilibrium price will affect quantity demanded, because, at the same time, the price of cream ( a complementary good) increases, and since both goods are complementary, they are bought together, and the effect of the reduction in the price of coffee might not necessarily caused an increase in the quantity demanded because this effect is cancelled out by the increase in the price of cream, hence the effect on quantity is ambiguous.

7 0
3 years ago
20 points easy?………………………
natita [175]

Answer:

Legal damages

Explanation:

yes 20 points easy

3 0
1 year ago
The Constitution expressly grants which of the following powers to Congress? a. to receive ambassadors b. to appoint judges c. t
lbvjy [14]

Answer:

d. to regulate interstate commerce

Explanation:

The United States Constitution has the commerce clause in Article 1 Section 8 which allows the Congress to control the commerce with other nations and among the states.

According to this clause, the Congress can regulate the commerce that takes place between states and because of that, the answer is that the  Constitution expressly grants the power to regulate interstate commerce to Congress.

3 0
3 years ago
Segmented Income Statement Gorman Nurseries Inc. grows poinsettias and fruit trees in a green house/nursery operation. The follo
bija089 [108]

Answer:

Poinsettias records a loss of $118,125            

Fruit Trees records a profit of $92,325        

The company therefore records an overall $25,800 loss

NB: See the workings below see the assumption mad to allocate common expenses since none is given in the question.

Explanation:

Variable costing income statement is a type of income statement that records variable cost separately first to determine the contribution margin and thereafter record the fixed cost which is further split into direct fixed expenses and common expenses.

The segmented income statement for Gorman Nurseries for the coming year can therefore be presented as follows:

Gorman Nurseries Inc.

Segmented Income Statement

For the coming year

Particulars                        Poinsettias ($)     Fruit Trees ($)    Total ($)

Sales                                         970,000           3,100,000        4,070,000

Variable COGS                       (460,000)         (1,630,000)     (2,090,000)

Variable selling exp. (w1.)  <u>       (38,800)  </u>     <u>     (124,000) </u>    <u>    (162,800)  </u>

Contribution margin                 471,200            1,346,000      1,817,200

Direct fixed overhead             (160,000)          (200,000)       (360,000)

Direct fixed S $ Admn exp.  <u>   (146,000) </u>     <u>       (87,000) </u>    <u>    (233,000) </u>

Segment margin                       165,200           1,059,000      1,224,200

Common fixed overh. (w2a)     (176,077)           (623,923)     (800,000)

Common S $ Admn ex (w2b)  <u> (107,248)  </u>      <u>   (342,752) </u>    <u>  (450,000) </u>

Segment Net Income (loss)   <u> (118,125)  </u>       <u>       92,325 </u>    <u>    (25,800) </u>

Workings:

w1. Variable selling expenses = Sales * Commission percentage

Poinsettias = $970,000 * 4% = $38,8000

Fruit Trees = $3,100,000 * 4% = $124,000

w2. Allocation of common expenses using the following assuptions:

a) Use cost of goods sold (COGS) to allocate Common fixed overhead:

Poinsettias = (460,000 / 2,090,000) * $800,000 = $176,077

Fruit Trees = (1,630,000 / 2,090,000) * $800,000 = $623,923

b) Use common selling and administrative expense using Sales:

Poinsettias = (970,000 / 4,070,000) * $450,000 = $176,077

Fruit Trees = (3,100,000 / 4,070,000) * $450,000 = $623,923

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3 years ago
One of the disadvantages that commonly plague advertisers on contemporary cable television is audience fragmentation. its high a
Nikolay [14]
Long lead time (the answer)(you’re welcome)
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