Determine elasticity, The year is 2007, and the price

Determine elasticity

Reference no: EM1368436

The year is 2007, and the price elasticity of driving on the Dulles Toll Road is 1.6. The owners of the Dulles Toll Road raise the cost of a one way trip to $8.50. The revenue from the toll increase is not as large as the owners forecasted. Should they have set a lower or higher toll?
Higher, because demand is elastic
Lower because demand is inelastic
Lower, because demand is elastic
Higher, because demand is inelastic

Reference no: EM1368436

Questions Cloud

Explain after delivering the package ray''s car backfires : Explain After delivering the package Ray's car backfires causing Flyer to jump in the path of a car injuring him and To what parties are The company and Racing liable. Are there any Defenses available to the company and Racing.

Calculate short run firm supply : Farm Fresh Corporation supplies sweet peas to canneries located throughout the Mississippi river Valley Like many grain and commodity markets, market for sweet peas is perfectly competitive.

Determine the demand curve : Gurgling Springs, Corporation, is a bottler of natural spring, is a bottler of natural springs water distributed throughout New England states. Five-gallon containers of GSI spring water are regionally promoted & distributed through grocery chains.

Explain ethical standards are objectively-determined : Explain ethical standards are objectively-determined by religious and moral experts and what is deemed right or wrong, fair or unfair, moral or immoral, ethical or unethical

Determine elasticity : The year is 2007, and the price elasticity of driving on Dulles Toll Road is 1.6. The owners of Dulles Toll Road raise the cost of a one way trip to $8.50.

Calculate failure and success ratios using fifo page removal : Using FIFO page removal algorithm, do a page trace analysis indicating page faults with asterisks (*). Then calculate the failure and success ratios.

Question about opportunity cost : Let's say, country A and B both consume and produce only food and clothing. Both countries use only labor to create these two products.

Explain the new equipment is expected to have a useful life : Explain The new equipment is expected to have a useful life of 8 years with no salvage value. Depreciation is computed by the straight-line method

Investigation of missing girl : The officer finds out that the daughter had spent lot of time on the Internet. The parents agree to let him take her laptop. What must happen next.

User Account

All Pages