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:
Income Tax is referred to as the amount of money an individual is required to report and remit to the tax agencies for earning revenues. Also, it is the federal government's share from the individual's earnings which would be used for their public works projects such as building railways and sewage treatment.
The following amounts are taxable and not.
a. Salary, $44,000 (Yes
)
b. Dividends received, $600 (Yes
)
c. Share of partnership income, $4,000 (Yes)
d. Partnership distribution in the current year, $1,000 (No)
e. Partnership distribution in the following year, $600 (No)
f. State lottery winnings of $2,000 (Yes)
Bobo's demand curve is elastic hence his purchasing ability is easily influenced by a slight change in the price of the product
Answer:
Economic profit can be derived from calculating total revenues minus all of the firm's costs, Economic profit can be derived from calculating total revenues minus all of the firm's costs, including its opportunity costs. are two stark realities any business firm must recognize.
Answer: 65.71%
Explanation: Share of wallet is a percentage of expenditure a consumer makes on a kind of purchase that goes to a specific company. Unlike the literal wallet, which is the $2,200 the customer earns per month, this focuses on a product category, and how much of that goes to a particular company.
In this case the product category is groceries which a customer spends $350 on per month. The portion that goes to a particular company, which is the share of wallet for that specific product category, is $230 which goes to Ubuyrite. Ubuyrite's share can be calculated as follows:
Portion of the product category going to Ubuyrite = $230
Total portion spent on the product category = $350
∴
× 100
= 65,71%
