1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
The management of Ro Corporation is investigating automating a process. Old equipment, with a current salvage value of $24,000,
dexar [7]

Answer:

The simple rate of return on the investment is closest to 19.16%

Explanation:

In order to calculate the the simple rate of return on the investment we would have to use the following formula:

simple rate of return = <u>Annual incremental net operating income</u>

                                                  Initial investment

<u />

Initial investment = Cost of the new machine - salvage value of old machine

Initial investment  = $384,000 - $24,000 = $360,000

Annual cost savings = $133,000

Annual depreciation = $384,000/6 = $64,000

Therefore, Annual incremental net operating income = $133,000 - $64,000  = $69,000

Therefore, simple rate of return = $69,000  / $360,000 = 19.16%

The simple rate of return on the investment is closest to 19.16%

6 0
3 years ago
Question 56 of 75. Louise is a 29-year-old taxpayer who will use the head of household filing status. Her 2020 modified adjusted
Andre45 [30]

Considering the situation described above, the maximum amount Louise may receive for the retirement savings contributions credit (Saver's Credit) is "<u>$150</u>."

This is because according to the Internal Revenue Service regulations, for individuals filing under the head of household filing status, with an adjusted gross income of $31,876 - $48,750, such person would only be able to receive 10% of his retirement savings contributions credit (Saver's Credit).

Therefore, Louise has only contributed $1,500 to her employer's 401(k) plan. Consequently, she can only receive 10%, which is "<u>$150</u>."

Hence, in this case, it is concluded that the correct answer is "<u>$150</u>."

Learn more about Savers credit here: brainly.com/question/25767045

7 0
2 years ago
George earns $50,000 business profit per year by selling donuts. He pays $12,000 per year in rent to his Uncle Fred for the buil
Feliz [49]

Answer:

None of the multiple choices is correct. The correct answer should be: "Business profit will increase by $12,000 per year"

Explanation:

$12,000 per year is the rental rate.

If his Uncle Fred gives him the building, George will not pay the rental fee. Thus, the business profit will increase by $12,000 per year.

If we consider about the economic profit or implicit cost, it will not change.

5 0
2 years ago
Latoya filed her tax return on february 10th this year. when will the statute of limitations expire for this tax return if latoy
melomori [17]
The statute of limitations generally ends three years from the laterof (i) the date the tax return was actually filed (3 years from February 10th of this year) or (ii) the tax return’s original due date (3 years from April 15th of this year).Accordingly,<span>Latoya’s statute of limitations for the tax return will end 3 years from April 15th.</span>
6 0
2 years ago
Two methods can be used to produce expansion anchors. Method A costs $65,000 initially and will have a $18,000 salvage value aft
stich3 [128]

Answer:

Method B should be used

Explanation:

Note: See the attached excel file for the calculation of the present worth of Method A and Method B.

From the attached excel file, we have:

Present worth of Method A = –$210,889.85

Present worth of Method B = –$118,011.18

Since the present worth of Method A and B above imply Method A costs more than Method B, Method B should be used.

Download xlsx
5 0
2 years ago
Other questions:
  • Which statement best describes the ideal of loyalty to one's supervisor
    14·1 answer
  • Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the f
    6·1 answer
  • Smashed pumpkins co. Paid $200 in dividends and $624 in interest over the past year. The company increased retained earnings by
    13·1 answer
  • How many people currently live in the south asian region? select one:
    15·1 answer
  • Using the information below for Sundar Company; determine the cost of goods manufactured during the current year: Direct materia
    7·1 answer
  • On January 1, Butte Company's Valuation Allowance for Trading Investments account has a debit balance of $23,200. On December 31
    15·1 answer
  • Kilbuck manufacturing operates in a lean manufacturing environment. kilbuck's actual conversion costs for the month of may follo
    12·1 answer
  • Trish receives $450 on the first of each month. Josh receives $450 on the last day of each month. Both Trish and Josh will recei
    12·1 answer
  • James is the new manager of operations at Springfield Motors. To his dismay, he finds the employees coming in late to work, taki
    11·1 answer
  • True or False. Since grant proposals need to be short, budget and personnel information should not be included.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!