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
elixir [45]
2 years ago
14

So, if you find that revenue goes up when you use an elasticity of 2 to estimate the effect of changing the fee from $8 to $16,

you can be sure that it will go up with a lower value of the elasticity. Question: Suppose that the increase in the fee from $8 to $16 reduces travel time in the central city from 30 minutes down to 20 minutes. What is the percentage change in the total cost of driving in central London
Business
1 answer:
Novay_Z [31]2 years ago
8 0

Answer:

The percentage change in the total cost of driving in Central London is:

= 33.33%

Explanation:

a) Data and Calculations:

Old Fee for driving per minute = $8

New Fee for driving per minute = $16

Percentage change in fee = $8/$8 * 100 = 100%

Driving time at old fee of $8 per minute = 30 minutes

Driving time at new fee of $16 per minute = 20 minutes

Percentage Change in driving time = 10/20 * 100 = 50%

Total cost of driving 30 minutes at old fee of $8 per minute = $240

Total cost of driving 20 minutes at the new fee of $16 per minute = $320

Therefore, the percentage change in the total cost of driving = ($320 -$240)/$240 * 100

= $80/$240 *100 = 33.33%

You might be interested in
Margarite's Enterprises is considering a new project that will require $345,000 for new fixed assets, $160,000 for inventory, an
atroni [7]

Answer:

NPV = (53,222.44)

Explanation:

Net fixed asset                              345,000

Working capital

160,000 inventory + 35,000 Ar =   195,000

short term deb                                 (110,000)

net working capital                           85,000

Total investment                            430,000

salvage value 345,00 x 25% = 86,250

release of the working capital  85,000

Cash flow at end of project      171,250

annual cash flow

sales             550,000

cost              (430,000)

depreciation    69,000

EBT                   51,000

tax expense 35%

                        (17,850)

net income       33,150

+ dep                 69,000

cash flow           102,150

Now we calculate the present value of the net cash flow and the present alue fothe end of the project

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 102150

time 4

rate 0.15

102150 \times \frac{1-(1+0.15)^{-4} }{0.15} = PV\\

PV $291,636.04

\frac{Principal}{(1 + rate)^{time} } = PV  

Principla (sum of salvage and released Working capital   171,250.00

time   5.00

rate   0.15

\frac{171250}{(1 + 0.15)^{5} } = PV  

PV   85,141.52

NPV = 291,636.04 + 85,141.52 - 430,000 = (53,222.44)

6 0
3 years ago
______ allows you to earn money while caring for your own children.
aleksley [76]
A family day care allows you to make money while caring for your own children
7 0
3 years ago
Read 2 more answers
You invest $3,000. You have speculated that you will earn an average of 7% on your initial investment each year. What do you exp
Paraphin [41]

Answer:

$5,100 Dollars

Explanation:

3,000 x .07 = 210

210 x 10 = 2100

3,000 + 2100 = 5100

You will have $5,100 dollars total value in 10 years!

8 0
2 years ago
Assume that in a private, closed economy consumption is $240 billion and investment is $50 billion, both at the $280 billion lev
adell [148]

Answer:

D. unplanned increases in inventories of $10 billion will occur

Explanation:

5 0
3 years ago
A dode blank has three beats'
Phantasy [73]
What is the question
7 0
2 years ago
Read 2 more answers
Other questions:
  • Criticism is hurtful because it makes one feel as if
    6·2 answers
  • Suppose that the required reserve ratio is 8.00 %. What is the simple money (deposit) multiplier?
    5·1 answer
  • In considering the decision to adopt a dog, indicate which of the following is an example of a private cost, a private benefit,
    15·2 answers
  • Which of the following statements is false?
    5·2 answers
  • On July 1, 2019, Sunland Company purchased new equipment for $80,000. Its estimated useful life was 5 years with a $10,000 salva
    10·1 answer
  • The ___ is a government agency that protects consumers from dangerous or falsely advertised products.
    7·1 answer
  • The balance sheet of Bonita Company at December 31, 2016, includes the following. Notes receivable $36,200 Accounts receivable 1
    12·1 answer
  • Calculate the total revenue if the firm produces 10 versus 9 units. Then, calculate the marginal revenue of the 10th unit produc
    13·1 answer
  • You have a franchised Planet Fitness gym. You began the business by paying your initial franchise fees and now you pay royalties
    11·1 answer
  • A top executive from Toyota sits on the boards of the Tomo Tire Co., which manufactures tires for Toyota automobiles. Toyota and
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!