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kirill [66]
3 years ago
8

You are the manager of the public transit system. You are informed that the system faces a deficit, but you cannot cut service,

which means you cannot cut costs. Your only hope is to increase revenue by increasing fares. You are advised that the estimated price elasticity of demand for the first few months after a price change is about −0.3. Select the statement that best describes the results of raising the fare in the short run.a. Total revenue falls, since demand changes and becomes price inelastic. b. Total revenue will rise incrementally as the demand fuctuates and price moves back and forth between being elastic and inelastic. c. Total revenue rises immedately after the fare increase, since demand over the immediate period is price Inelastic.
Business
1 answer:
Karolina [17]3 years ago
4 0

Answer:

Total revenue rises immedately after the fare increase, since demand over the immediate period is price Inelastic.

Explanation:

Elasticity in the price demand measures the porcentage in the change of the quantity demanded as a response to a change in the price. If the elasticity is more than 0 but less than 1 it means that the price demand is inelastic. So when the price is rised the quantity demand will decrease in a minor porcentage than the rise in the price so it will represent a bigger revenue.

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Diego feels he has achieved some measure of respect as a cosmetic surgeon. Now, Diego focuses on being the best he can be. Which
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Diego is trying to focus and meet his self-actualization needs.

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4 0
2 years ago
Your bank account pays an interest rate of 8 percent. You are considering buying a share of stock in XYZ Corporation for $110. A
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Answer:

XYZ is not a good investment as compared to Bank because it has lower per year interest than the bank.

Explanation:

Bank offers 8% per year

To compare the investment we should calculate the holding period return of the share which is as follows

Holding period return = ( Dividend + Change in price ) / Initial price )

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4 years ago
Class time. Process Costing C50 points) Our company manufactures Chemical X. Assume the company uses weighted average. Separate
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Answer:

completed units = 9,500 gallons

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Answer: Firm Capabilities

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