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Anon25 [30]
3 years ago
5

The Acmeville Metropolitan Bus Service currently charges $ 0.67 for an all-day ticket, and has an average of 472 riders a day. T

he 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 $ 0.78 . The marketing department's studies indicate this price increase would reduce usage to 182 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:
Otrada [13]3 years ago
6 0

Answer:

The price elasticity of demand is -3.7

Explanation:

Price Elasticity of demand measure the responsiveness of demand against the change in price of the product.

Simple percentage method calculate the price elasticity by taking ratio of percentage change in Demand to percentage change in price of the product.

Percentage change in Demand = ( Revised demand - Initial demand ) / Initial demand  

Percentage change in Demand = ( 182 riders - 472 riders ) / 472 riders = -0.6144 = -61.44%  

Percentage change in Price = ( Revised Price - Initial Price ) / Initial Price  

Percentage change in Price = ( $0.78 - $0.67 ) / $0.67 = 0.1642 = 16.42%

Price Elasticity = Percentage change in Demand / Percentage change in price

Price Elasticity = -61.44% / 16.42% = -3.74 = -3.7

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In the study of geomorphology, why do we primarily concentrate on processes rather than on distribution patterns by latitude?
4vir4ik [10]
In the study of geomorphology, processes like weathering and erosion are key to how the rocks will be sculpted by natural forces to produce interesting landforms like buttes and mesas for example. The distribution of geomorphological features like say the Amazon River by latitude is important but the process that shaped the landforms is more important as to how it got its present configuration.
5 0
4 years ago
A firm is planning on paying its first dividend of $2 three years from today. After that, dividends are expected to grow at 6% p
BabaBlast [244]

Answer:

The intrinsic value of a share today is $16.87

Explanation:

Intrinsic Value of the share is calculated as below.

Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.

Value of Share = Dividend / (Rate of return - Growth rate)

placing values in the formula

Value of share = $2 / (14% - 6%) = $25

$25 is the value of share after 3 year, to calculate today's value we have to discount it as below

Today's value of share = $25 x ( 1 + 14% )^-3 = $16.87

7 0
4 years ago
1. You’ve been hired by Nielsen Company to study the market for potatoes. Demand in the potato market is characterized by the de
icang [17]

Answer:

P = MR = 1

Explanation:

The demand function is q = 25 - 12p.

The  total income is the price of potatoes multiplied by the quantities of potato --> P * Q

p*q = p*(25-12p)

p*q = 25p - 12p^2

the first derivative of the previous equation is the marginal revenue. In perfect competition the Price = Marginal revenue.

First derivative of total income ---> 25-24p

And MR = P

25-24p=p

25=25p

<h2>p=1</h2>

8 0
3 years ago
Claire is on her way to her job at a call center where she was planning on spending three hours. She can drop in and work any ho
denis23 [38]

Answer:

It should be greater than $36

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The opportunity cost of working is the amount of money sacrificed or could have earned if the individual was not working. In this case, Claire has decided to go with her friend which means that the opportunity cost of not working is less than the benefits receives from going out. Because she is not working it means that the opportunity cost of working is more than 36 dollars, which is the income she could have earned in 3 hours.

7 0
4 years ago
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Question 6 write an essay on the forms of ownership​
Ne4ueva [31]

Answer:

huh?no one's got time to write an essay for you

3 0
3 years ago
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