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Roman55 [17]
3 years ago
6

The Acmeville Metropolitan Bus Service currently charges $0.88 for an all-day ticket, and has an average of 433 riders a day. Th

e bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $ 0.99 . The marketing department's studies indicate this price increase would reduce usage to 182 riders per day. Calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method. Round your answer to one decimal place.
Business
1 answer:
cupoosta [38]3 years ago
3 0

Answer:

Absolute value of the price elasticity of demand = 6.8 (ELASTIC)

Explanation:

<em>(See attached)</em>

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When is it not necessary to build a new market supply schedule?
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Answer:

The correct answer is c. Prospect theory.

Explanation:

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2 years ago
WHAT ARE STAKEHOLDERS FOR GOVERNMENT PROVISION??
Temka [501]

Answer:

A stakeholder is any person or organization that has a legitimate interest in a specific project or policy decision. As an economist, whenever you are required to discuss the costs and benefits.

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2 years ago
If a profit-maximizing, competitive firm is producing a quantity at which marginal cost is between average variable cost and ave
Murljashka [212]

Answer:

a. keep producing in the short run but exit the market in the long run.

Explanation:

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The Marginal cost is between average variable cost and average total cost. The business can still continue producing goods because the quantity being produced is still able to cover the average variable cost. This means that the firm is still able meet its variable costs by setting the price of its goods to its marginal cost which is an amount greater than its average variable cost.  

Long Run Effect

However, in the long-run the company will begin to have issues even meeting other important costs such as the fixed costs associated with production and as such, the firm will need to exit the market in the long run. For instance the cost of long term loans (principal and interest) may not be covered by the net income of the firm.  

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3 years ago
If gas costs $3.05 per gallon and you purchase 18.875 gallons, how much will you spend?
Nezavi [6.7K]

Answer:

You will spend about 57.57 gallons (57.568 to be exact)

Explanation:

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