Solution:
Let's start by assuming that the taxi ride demand is extremely elastic, to the extent that it is vertically sluggish! If the cabbies raise the fair price by 10% from 10.00 per mile to 11.00 per kilometre, the number of riders remains 20.
Total income before fair growth= 20* 10= 200.
Total income following fair growth = 11* 20= 220.
A 10% increase in the fare therefore leads to a 10% increase in the driver's revenue.
Therefore, the assumption in this situation is that the cab drivers think the taxi driving requirement is highly inelastic.
The demand curve facing the drivers of the cab is still inelastic, but not vertically bent.
When the rate increased from 10% to 11, riders declined from 20% to 19%
Total revenue before fair growth is 20* 10= 200
The gap between revenue and fair growth is 19* 11= 209
This means that a realistic 10% raise doesn't result in a 10% boost on income Because the market curve for taxi rides is not 100% inelastic, but rather low inelastic, so that a fair increase (control) allows consumers to lose their incomes.
Answer:
the ending inventory using the FIFO cost flow assumption is $282,900
Explanation:
The computation of the ending inventory using the FIFO cost flow assumption is shown below;
But before that first we have to determine the ending inventory units i.e.
= 280 + 380 + 480 + 290 - 1,200
= 230 units
So, the ending inventory is
= 230 units × $1,230
= $282,900
Hence, the ending inventory using the FIFO cost flow assumption is $282,900
Answer:
increase by more than $1 million
Answer:
Convenience: You don’t have to worry about how much cash you have on hand. Just remember that you can always use a debit card instead. With a debit card you won’t be in danger of accumulating debt that will be subject to high interest charges if you don’t pay it off each month, like you would with a credit card. Remember to keep track of your checking account balance to be sure you can cover what you’re buying.
