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MaRussiya [10]
3 years ago
14

Consider two cities, City A and City B, which are entirely identical except that Uber operates in City A, but not in City B. Con

sumers in City A can choose between Uber and a taxi when selecting a means of transport, while consumers in City B can travel only via taxi. When the government imposes a tax on taxis in City A and City B, the price of a taxi ride will increase _______ in City A than in City B.
Business
1 answer:
Pepsi [2]3 years ago
5 0

Answer:

Less

Explanation:

In the given scenario taxi prices will go up less in City A than City B. This is because in City A we have both Uber and taxis, and there is substitution. If customers don't have taxis they will commute by Uber. So demand for taxis in City A will be elastic. An increase in price will result in a large decrease in demand. Taxi drivers will cautiously increase prices here.

In City B the only option for commuters is the taxi, so the demand will be inelastic. As price increases there is relatively little change in quantity demanded. Taxi drivers can increase prices more here without losing customers.

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Greeley [361]

Answer:

rent revenue 21,500 debit

  unearned revenue  21,500 credit

--to amend incorrect recognition of revenue--

Supplies expense  4,070 debit

              Supplies          4,070 credit

--to record use of supplies--

Insurance expense  1,875 debit

              Prepaid Insurance 1,875 credit

--to record use of supplies--

advertizing expense 150 debit

repair expense        1050 debit

utilities expense       200 debit

    account payable           1,400 credit

--to record accrued expenses--

wages  expense   810 debit

   wages payable       810 credit

--to record accrued wages--

interest expense 420 debit

  interest payable    420 credit

--to record accrued interest--

Explanation:

#1 unearned revenue

The company should not recognize the summer-month occupancy as this occurs between April and June thereofre it is unearned The company has an obligation to perform. To give the rental space thus it is a liability not earnings.

#2 Supplies adjustment:

Jan 1st $4,600 - March 31st $530 = $4,070 supplies expense

#3 expired insurance:

value per month: $7,500 / 12 months = 625

month expired between Jan 1st and March 31st: 3

total value f expired insurance: $625 per month x 3 month = 1,875

#4 accured expenses concetps were incurred and we most recognize them

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#6 accrued interest expense: principal x rate x time

$21,000 x 0.08 x 3/12 = $420

3 0
3 years ago
Can someone please help me with this
Alik [6]

Answer:

deferred revenue

Explanation:

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6 0
3 years ago
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Answer:

the answer is b. increased

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3 years ago
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Hope it helped!

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2 years ago
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Answer:

Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be written last-B.

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3 years ago
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