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sineoko [7]
2 years ago
15

The Acmeville Metropolitan Bus Service currently charges $0.99 for an all-day ticket, and has an average of 588 riders a day. Th

e 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 $ 1.1 . The marketing department's studies indicate this price increase would reduce usage to 337 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:
Westkost [7]2 years ago
7 0

Answer:

-3.88 or 3.88

Explanation:

Calculation to determine the absolute value of the price elasticity of demand

Using this formula

Price elasticity of Demand = % change in quantity demanded / % change in price

Price elasticity of Demand =%∆QD / %∆P

Let plug in the formula

Price elasticity of Demand= (( 337 - 588 )/( 1.1- 0.99)) * ( 0.99 / 588 )

Price elasticity of Demand= (-251 / 0.11) * ( 0.0017)

Price elasticity of Demand= -22,81.8181 * 0.0017

Price elasticity of Demand= -3.88 or 3.88 ( absolute value)

Therefore the absolute value of the price elasticity of demand will be -3.88 or 3.88

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Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that throu
Airida [17]

Answer:

a. Cash freed up by cash management:

= Amount received * speed increased by + Amount disbursed by speed reduced by

= 2,550,000 * 2 days + 1,110,000 * 1/2 days

= 5,100,000 + 555,000

= $‭5,655,000‬

b. Interest on freed up cash:

= ‭5,655,000‬ * 7%

= $‭395,850‬

c.<u> No.</u> It is less than the income earned from interest from freed up cash so it should not be implemented as it brings no additional benefit.

4 0
2 years ago
Lois is considering buying a new bicycle for $200. it has a 20hance of breaking down in the next year. what is the expected valu
denis23 [38]

The expected value in terms of repair cost for this purchase is $40.

Repair cost manner fees and expenses are fairly essential or acceptable due to normal wear and tear, periodic replacement, vandalism, damage, or destruction of any part of the ability property, and shall now not encompass operating fees.

First, bring together the entire listing of substances wished, and report a high and occasional price estimate for each. as soon as it really is carried out, add each column of numbers to get the whole cost for each high and coffee. Then upload the two totals, after which divide with the aid of to get the common price.

Repair cost and substitute mean all non-routine, non-repetitive activities, repairs or substitutes of systems, equipment, or device required for continuity of operations, safety, and running overall performance this is vital to prevent or correct a failure of the Pelletier Facility and which aren't protected as a component.

Learn more about repair costs here brainly.com/question/22932657

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4 0
1 year ago
A commercial bank holds $500,000 in checkable deposits liabilities and $120,000 in reserves. If the required reserve ratio is 20
scZoUnD [109]

Answer: E.) Amount created by Single Bank $20,000 and Amount Created by Banking System $100,000

Explanation:

The required reserve ratio = 20%

Checkable deposit liabilities = $500,000

Reserve = $120,000

The required reserve refers to a designated percentage of a commercial bank's deposit which is the minimum that must be held by a commercial bank. Regulation is usuay pronounced by the central bank of the nation.

Banking system loan increase :

Reserve ratio × Checkable deposit liabilities

20% × $500,000 = 100,000

Commercial bank maximum

Reserve amount - required reserve amount

$120,000 - (0.2 × 500,000)

$120,000 - $100,000 = $20,000

7 0
3 years ago
Sugar, Inc. sells $529,300 of goods during the year that have a cost of $428,600. Inventory was $30,083 at the beginning of the
RoseWind [281]

Answer:

The inventory turnover ratio is 13.3 times.

Explanation:

The inventory turnover ratio is a measure to see how many times the average inventory of the business has been sold or turned over during a period of time. The inventory turnover ratio is calculated by dividing the cost of goods sold by the average inventory.

The average inventory = (opening inventory + closing inventory) / 2

Average inventory = (30083 + 34338) / 2  = 32210.5

Inventory turnover ratio = 428600 / 32210.5  = 13.3

3 0
3 years ago
Read 2 more answers
Juan and Rita are having trouble with new employees Peters and Jackson, indicating which of the four targeted areas of change is
adoni [48]

Answer:

people

Explanation:

There are four areas that are subject to change as the organization frequently tries to adjust to internal and external pressures. These four areas includes:

1. Strategy

2. People

3. Structure

4. Technology

However, in this case, it has been established that, Juan and Rita are having trouble with new employees Peters and Jackson, this is implies or indicates that areas of change is most needed is PEOPLE, because in this case, the problem is between people.

5 0
3 years ago
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