1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
gladu [14]
4 years ago
14

The Acmeville Metropolitan Bus Service currently charges $0.99$0.99 for an all-day ticket, and has an average of 433433 riders a

day. The 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 $ 1.11.1 . The marketing department's studies indicate this price increase would reduce usage to 169169 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:
Illusion [34]4 years ago
5 0

Answer:

PED = 5.49

Explanation:

current price = $0.99 per ticket

average daily tickets sold = 433

average daily revenue = $428.67

if the company increases the price to $1.10, then average daily tickets will be only 169. Average daily revenue will drop to $185.90

price elasticity of demand (PED) = % change in quantity demanded / % change in price

PED = [(169 - 433)/433] / [(1.1 - 0.99)/0.99] = -0.6097 / 0.1111 = -5.49 or |5.49| in absolute terms

the price of tickets is very elastic, meaning that a 1% change in price will result in a much higher proportional change in quantity demanded

You might be interested in
At today's rate of consumption, the world's known reserves of tantalum will last about ________ more years, but if everyone in t
valentinak56 [21]

Answer:

  • 200 more years
  • 15 years

Explanation:

Tantalum is a metal used to manufacture electronics such as cell phones, computers and digital cameras. The problem with tantalum is that it is found in coltan ore, which is mostly mined in Africa. The African country with the largest tantalum exports is Congo, a country devastated by continuous civil wars. Millions of people have been killed in these civil wars and the warlords control coltan mines.

8 0
3 years ago
The four major expenditure categories of GDP are: Group of answer choices consumption, government purchases, taxes, and investme
Nimfa-mama [501]

Answer:

consumption, investment, government purchases, and net exports.

Explanation:

The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.

Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being.

Basically, the four major expenditure categories of GDP are consumption, investment, government purchases, and net exports.

4 0
3 years ago
"which term refers to the level of commitment that workers make to an employer?"
user100 [1]

Employee engagement is the term that refers to the level of commitment that workers make to an employer. It also shows that an employee is committed to the company by doing his best to achieve the company’s goal and vision. Also, employee engagement is giving commitment to become loyal to the company, giving ideas to improved the company, and being one with the organization.

3 0
3 years ago
It is well-known that retaining an existing customer is far less expensive than acquiring a new one, so you suggest that the own
leva [86]

Answer:

internal and external data

Explanation:

Big Data analysis can be regarded as one that contains massive amounts of data as well as complex analysis.

Internal data can be regarded as information that is been generated from within the business these could contains some areas like operations as well as maintenanc and personnel.

External data on other hands are attributed to the market, as well as from customers and from the firms competitors, it could be gotten from survey. All for increasing profitability.

4 0
3 years ago
Consider four different stocks, all of which have a required return of 15 percent and a most recent dividend of $4.20 per share.
natka813 [3]

Answer:

Dividend yield for W = 5%

Dividend yield for X = 15%

Dividend yield for Y = 20%

Dividend yield for Z = 4.6%

Explanation:

For a constant growth stock Price =\frac{D1}{r-g}

If r is made subject of formula;  r=\frac{D1}{Price}+g = div yield + growth rate

For Stock W, given r = 15% and g= 10%; dividend yield = 15%-10%=5%

For Stock X, given r = 15% and g= 0%; dividend yield = 15%-0%=15%

For Stock Y, given r = 15% and g= -5%; dividend yield = 15%-(-5)%=20%                                      

For Stock Z, the price of the stock today is calculated as follows:

Price of the stock today = \frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{P2}{(1+ke)^2}.

where P2= \frac{D3}{ke-g}

Price of the stock today = \frac{4.2(1.2)}{(1+0.15)^1}+\frac{4.2(1.2)^2}{(1+0.15)^2}+\frac{4.2(1.2)^2(1.1)}{(0.15-0.1)(1+0.15)^2}=109.57

Therefore dividend yield =\frac[D1}{Price} = \frac{4.2(1.2)}{109.57}=4.6%

5 0
4 years ago
Other questions:
  • Edwards Electronics recently reported $11,250 of sales, $5,500 of operating costs other than depreciation, and $1,250 of depreci
    12·1 answer
  • You purchase one IBM July 90 call contract for a premium of $4. The stock has a 2 for 1 split prior to the expiration date. You
    15·1 answer
  • During the ________ stage of group development, work behaviors evolve into a sharing of information, acceptance of different opi
    11·2 answers
  • GoodTimes, Inc. has asset turnover of 0.5 times, a net profit margin of 10% and average total assets of $100, what is its net in
    8·1 answer
  • Barney extends his lunch break beyond the allotted time. Wilma uses the office telephone for unauthorized personal phone calls.
    9·2 answers
  • Using – to control rule-making agencies and increasing the size of the – staff have allowed presidents to use the administrative
    5·1 answer
  • could this type of situation ever occur in the United States and imposter taking over the leadership of the country ​
    11·1 answer
  • How to start a business
    10·1 answer
  • Lee is the executive of a car manufacturer. Lee decides the appearance of one of his car designs outweighs the desire to make th
    14·1 answer
  • Claudia sells her highly successful hair salon to Carl. In the sales contract, Claudia agrees never to open a hair salon in the
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!