Inelastic with respect to the price of a bus ride

Assignment Help Business Economics
Reference no: EM13998562

In Pioneer Ville, the price elasticity of demand for bus rides is 0.5, the income elasticity of demand for bus rides is -0.1, and the cross elasticity of demand for bus rides with respect to gasoline (personal consumption) is 0.2. 3. Is the demand for bus rides elastic or inelastic with respect to the price of a bus ride? Why? Would an increase in bus fares increase the bus company’s total revenue? Explain your answer.

Reference no: EM13998562

Questions Cloud

Explain how the travel cost method : Explain how the travel cost method might be used to determine the value visitors place on their right to visit a national park?
What is the effect of celebritys attractiveness-likeability : Identify a few ads for brands that have been endorsed by United States celebrities. Try to use examples your classmates haven't already posted (i.e., review the papers posted before yours). What is the effect of the celebrity’s attractiveness, likeab..
Decided to revamp the entire place over a weekend : The owner of Tracy’s Diner decided to revamp the entire place over a weekend. The new décor included warm colors, such as red, which are thought to increase hunger, and softer lighting, which is thought to encourage customers to linger over their foo..
What is the price elasticity of demand for file folders : Suppose an office supply store increased its price of file folders from $.79/box to $.99/box and the quantity demanded decreased from 85 boxes/month to 83 boxes/month. What is the price elasticity of demand for file folders? Is the demand elastic, un..
Inelastic with respect to the price of a bus ride : In Pioneer Ville, the price elasticity of demand for bus rides is 0.5, the income elasticity of demand for bus rides is -0.1, and the cross elasticity of demand for bus rides with respect to gasoline (personal consumption) is 0.2. 3. Is the demand fo..
Combined impact be on equilibrium price-quantity of gasoline : Suppose that a carbon tax is imposed and electric cars become common. What will the combined impact be on the equilibrium price and quantity of gasoline? Explain your reasoning and show graphically. Remember quantity falls, but change in price is ind..
Now consider the invention of cheap electric vehicles : Electric cars: Now consider the invention of cheap electric vehicles. Explain how you imagine the invention of cheap electric cars would affect the demand for gasoline? Why? Which determinant of demand or supply would be affected?
Sketch out an indifference curve : For each of the following utility functions, calculate (or figure out) the MRS and sketch out an indifference curve for U=4, plotting at least 2 points on each curve, and explain whether the preferences violate the diminishing MRS or convexity of ind..
Construct a representative indifference curve : Construct a representative indifference curve for each of the following situations. (Note: Even though some of the goods described exist only in discrete quantities, draw the IC assuming the goods exist in continuous quantities). The two goods are wa..

Reviews

Write a Review

Business Economics Questions & Answers

  Income to the poor familys income before tax and after tax

Rich family before tax 500,000. tax rate 30%. middle class before tax 50000. 20% tax rate. poor family 20000. 2% tax rate. what is the ratio of rich's family's income to the poor family's income before tax and after tax? is this tax progressive?

  About the speakers experiences and feelings

In the poem Facing It by Yusef komunyakaa. Characterize the speaker of the voice you hear in the poem, what can you tell about the speakers experiences and feelings. How does the title fit the poem and the speaker? How does the last line fit?

  Tax planning considerations for employees

Write a report named Tax Planning Considerations for Employees. The report will involve tax planning issues related to the organization’s employees. USco designs and manufactures specialized equipment used in various manufacturing applications.

  Frances every capita gdp

Elucidate however, was 3 percent in Finland also 1.8 percent in France. From this we can conclude that France's every capita GDP

  Research shows that as the wages of married women rise

Research shows that as the wages of married women rise, more of them work and they work more hours per year. However, as the wages of their spouse increase, they reduce their labor force participation rate and hours worked (hint: this is like non-lab..

  Illustrate what are fours supply factors of economic grwoth

Illustrate what are the fours upply factors of economic grwoth. what is the demand factor? What is the efficiency factor.

  Revenues and profits for each clinic and the merged firm

Two clinics want to merge. The price elasticity of demand is -0.20, and each clinic has fixed costs of $60,000. One clinic has a volume of 7,200, marginal costs of $60, and a market share of 2 percent. What are the total costs, revenues, and profits ..

  A monopolistically competitive firm

A monopolistically competitive firm:

  Economy that might make the policy choice ineffective

What problem is the economy facing? Assume you are a governor on the Federal Reserve Board of Governors. What type of policy (easy money or tight money) would you recommend to fix the problem you identified in question 1? What could happen in the eco..

  Evaluate the options for solving the problem

Generate options for solving the problem in the scenario. Evaluate the options for solving the problem. Decide on the best option for solving the problem. Explain how you will implement the decision made and reflect on whether this option was the mos..

  Find out that this can be effective for our economy

When looking at the role of tax cuts, you will find out that this can be effective for our economy.

  How do shifts in provide also demand influence price

how do shifts in provide also demand influence price, quantity also marketplace equilibrium of toilet paper.

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