Problem regarding the demand curves

Assignment Help Accounting Basics
Reference no: EM13967031

Demand Curves

The Eastern Shuttle, Inc., is a regional airline providing shuttle service between New York and Washington, DC. An analysis of the monthly demand for service has revealed the following demand relation:

Q = 26,000 - 500P - 250POG + 200IB - 5,000S

where is quantity measured by the number of passengers per month, is price ($), POG is a regional price index for other consumer goods (1967 = 1.00), Iis an index of business activity, and S, a binary or dummy variable, equals 1 in summer months and 0 otherwise.

A. Determine the demand curve facing the airline during the winter month of January if POG = 4 and I= 250.

B. Determine the demand curve facing the airline, quantity demanded, and total revenues during the summer month of July if = $100 and all other price-related and business activity variables are as specified previously.

Reference no: EM13967031

Examples of unit-level activities for jetblue

How can the concept of unit-level activities be applies to an airline? More specifically, what are two examples of unit-level activities for JetBlue? What steps has JetBlue

Record income taxes on may net income

For each of the transactions prepare journal entries, using the date of the transaction as the reference. Calculate NGS's preliminary net income and net profit margin for the

Calculate net income to determine bonus

Managers are given bonuses based on the financial accounting net income for their product line. Which one of the following methods, used internally, would best accomplish th

Dividends received by common stock-holders

The board of directors declared and paid a $3,000 dividend in 2009. In 2010, $12,000 of dividends are declared and paid. What are the dividends received by the common stockhol

Activity variance for vehicle operating cost

Portsche Snow Removal's cost formula for its vehicle operating cost is $2,310 per month plus $317 per snow-day. For the month of November, the company planned for activity o

Types of patients make use of their emergency room

A hospital is interested in what types of patients make use of their emergency room facilities. It is decided to sample 10% of all patients arriving at the emergency room fo

What amount of gross income should pierce report

Pierce had no restrictions on the use of the advance rental payments and renders no services connection with the rental income. What amount of gross income should Pierce rep

Dissatisfied employees may steal from a sense of entitlement

Which of the following characteristics is most likely to heighten an auditor's concern about the risk of material misstatements, due to fraud in an entity's financial statem


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd