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Hatshy [7]
3 years ago
8

A local transit authority charges​ $1 for a bus ride. An economics study suggests that in the price range from​ $0.50 to​ $1.50,

the elasticity of demand for bus trips is 1.2. To increase its​ revenue, the transit authority should
Business
1 answer:
Sunny_sXe [5.5K]3 years ago
5 0

Answer:

To increase its revenue, transit authority should lower the fare.

Explanation:

The 'elasticity of demand' measures the change in consumers response in quantity he demands as a result of the change in price, other factors remaining same.

A product is called elastic if with the increase or decrease in price, there is a drastic change in the quantity demand of the product. If the transit authority will lower its fare, then their revenue will increase as the elasticity of demand for bus trip is 1.2. By lowering the fare, the demand would increase and their revenue will increase.

You might be interested in
Under which market structure does the action of one firm have a spillover effect on the decisions of other firms?
irina [24]

I believe the answer is: Monopoly

In monopoly, the power to determine the price of a certain type of product fall to the hands of a single company. Which means, every single actions that made by this company would force other firms to conform since they do not possess enough resources to challenge this controlling company.

5 0
3 years ago
Suppose C1 and C2 form a partition of sample space S. Suppose A and B are two events such that the following statements are true
kirza4 [7]

Answer:

Option b. A and B are conditionally independent given C2.

Explanation:

The conditional probability of an event is the probability that a given event will occur given that another event, say A has already occurred.

In a case where events A and B are independent (in this case, where the probability of A has no  effect on the probability of B occurring), the conditional probability of an event B given that A has taken place is simply the probability of the event A.

If the two events are not independent, then the probability of an event occurs as an intersection of set A and B.

6 0
3 years ago
An investment should be undertaken A) if the present value of the expected income stream associated with the investment is great
Alona [7]

Answer:

A) if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project.

Explanation:

It is when the present value of the expected income stream associated with the investment is greater than the full cost of the investment project that the project is profitable. Most investments are undertaken with the aim of making profits.

The net present value can be used to determine if the present value of the expected income stream associated with the investment would be greater than the full cost of the investment project.

3 0
3 years ago
By definition, imports are Group of answer choices people who work in foreign countries. limits placed on the quantity of goods
Naddik [55]

Answer:

goods produced abroad and sold domestically.

Explanation:

Exports are goods produced in the domestic economy and sold abroad.

Quotas limits placed on the quantity of goods leaving a country.

Countries trade goods for which they have comparative advantage and not absolute advantage.

I hope my answer helps you

5 0
3 years ago
Lucas Co. has a job-order cost system. For the month of April, the following debits (credits) appeared in the general ledger acc
aliya0001 [1]

Answer:

direct material charge = $8500

Explanation:

given data

April 1 balance = $24000

April 30 Direct materials = 80000

April 30 Direct labor = 60000

April 30 Factory overhead = 54000

April 30 finished goods =  200000

so balance is = finished goods - ( balance + Direct materials + Direct labor + Factory overhead )

put here value

balance =  200000 - ( 24000 + 80000 + 60000 + 54000 )

balance = 18000

so here balance above $18000 is total manufacture cost of job no 100

so direct material charge for job no 100 is

direct material charge =  manufacturing cost - applied cost - direct labour cost

direct material charge = 18000 - 4500 - 5000

direct material charge = $8500

5 0
3 years ago
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