The acmeville metropolitan bus service currently charges $0.88 for an all-day ticket, and is used by an average of 513 riders a day. the 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 $0.99. the marketing department\'s studies indicate this price increase would reduce usage to 249 riders per day. calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method to determine if the bus company should increase price or decrease price to increase revenues.

Answers

Answer 1
Final answer:

To calculate the absolute value of the price elasticity of demand, use the simple percentage change method. In this case, the demand for bus tickets is elastic, so the bus company should decrease the ticket price to increase revenues.

Explanation:

To calculate the absolute value of the price elasticity of demand, we need to use the simple percentage change method. The formula for calculating price elasticity of demand is to divide the percentage change in the quantity requested by the percentage change in price. In this case, the initial quantity demanded is 513 and the final quantity demanded is 249, while the initial price is $0.88 and the final price is $0.99.

The percentage change in quantity demanded is (513 - 249) / 513 = 0.515 and the percentage change in price is (0.99 - 0.88) / 0.88 = 0.125. Therefore, the absolute value of the price elasticity of demand is 0.515 / 0.125 = 4.12.

Since the absolute value of the price elasticity of demand is greater than 1, this means that the demand for bus tickets is elastic. Thus, the bus company should decrease the ticket price in order to increase revenues.

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Related Questions

Most frequent pattern mining algorithms consider only distinct items in a transaction. however, multiple occurrences of an item in the same shopping basket, such as four cakes and three jugs of milk, can be important in transactional data analysis. how can one mine frequent itemsets efficiently considering multiple occurrences of items? propose modifications to the well-known algorithms, such as apriori and fp-growth, to adapt to such a situation.

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فکر کنم الگوریتم eclat کارآمد باشه . چون تراکنش ها رو دسته بندی میکنه

مجید چه خبر :)      ئئئئئئئئئئئئئئئئئئئئئئئ

Which of the following statements about credit scores is TRUE? A.Credit scores reflect how likely individuals are to repay their debts. B.Credit scores range from the low 300’s to the mid 800’s. C.Each person has three credit scores. D.All of the above.

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D. All of the above.

Beta business has total current assets of $1,000,000 and total current liabilities of $400,000. if the company purchases $100,000 of inventory on account, its current ratio will __________

Answers

Given:
total current assets : 1,000,000
total current liabilities : 400,000
purchase 100,000 worth of inventory on account.

Current ratio = total current assets / total current liabilities

current ratio = 1,000,000 / 400,000 = 2.50

Current assets: 1,000,000 + 100,000(inventory) = 1,100,000
Current liabilities: 400,000 + 100,000(accounts payable) = 500,000

Current ratio = 1,100,000 / 500,000 = 2.20

From 2.50 current ratio, the company will have a current ratio of 2.20 after it purchases inventory on account. 

Current ratio tells us the ability of the company to pay off short term liabilities using the company's assets.

what are three parts of the cell theory?

Answers

The three parts of the cell theory are as follows: (1) All living things are made up of cells, (2) Cells are the smallest units (or most basic building blocks) of life, and (3) All cells come from preexisting cells through the process of cell division. Cells were first observed by the natural philosopher Robert Hooke in 1665. Though many scientists contributed to the understanding of cells, Matthias Schleiden and Theodor Schwann are credited with describing the first two parts of the cell theory in 1839, and Rudolf Virchow with later contributing the third. Today, the cell theory is considered the foundation of biology.
the first one is all known things are made up of cells.
the second one is all living cells arise from pre-existing cells by division
and the last one is the fundamental unit of structure and function in all living organisims

What performance standards should guide a hospital emergency room or fire department?

Answers

The biggest problem with emergency rooms is patient flow and emergency over-crowding. Improving these two problematic areas should be the performance standards for guiding a hospital emergency room.

Final answer:

Performance standards for emergency services like hospital emergency rooms and fire departments are designed to ensure maximum efficiency and safety. They incorporate principles of flexibility, commitment to care, and the utilization of technology such as EHRs to streamline emergency responses. Ensuring continuous operation during disasters is also a key aspect of these standards.

Explanation:

Performance standards for hospital emergency rooms and fire departments are vital as they ensure prompt, effective services that cater to the needs of the community during emergencies. The performance-oriented standards provide the flexibility needed for these services to adopt the most efficient practices while still achieving the desired outcomes. These practices could include reducing the worker fatality rates by creating a safer workplace and, hence, lowering workers' compensation premiums, as suggested by Mr. Viscusi's research.

Commitment to care is crucial, as legislated by EMTALA, requiring hospitals to treat patients in emergencies irrespective of their insurance coverage. This principle highlights the challenge of providing care efficiently given the reliance on emergency rooms by the uninsured. Furthermore, performance standards can also involve using Electronic Health Records (EHRs) which allow for quick access to a patient's medical history, making emergency care decisions faster and more informed.

For fire departments, continuing operations after disasters like earthquakes is essential. The inclusion of emergency medical services, fire department, police, and government operations is paramount to manage rescue efforts and contain additional emergencies, emphasizing the importance of a robust emergency response and notification strategy.

Jack set himself a goal of shooting a 79 or better on his local golf course before the end of spring. this is a ________ goal.

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Performance goal

Performance goals are short-term objectives that have a specific target end result relating to certain duties or tasks. In a job setting, it describes important responsibilities and the performance outcomes that an employee aims to achieve. These goals are usually in line with the overall or common goals of the department or company where the employee works in. 

What feature of heaps allows them to be efficiently implemented using a partially filled array?

Answers

The answer is "Heaps are complete binary trees".

In software engineering, a heap is a particular tree-based information structure that fulfills the heap property. The heap is one maximally effective execution of a dynamic information sort called a priority queues, and in reality priority queues are regularly alluded to as "heaps", regardless of how they might be implemented.

The manager of the golden orange drink company states that he is very concerned with the continuing decline in sales of the company's major product, a concentrated orange drink. the manager has asked for your assistance in identifying the reasons for the sales decline. the most appropriate way to begin would be with:
a. a case analysis.
b. an experiment in which price is systematically varied.
c. descriptive research.
d. a controlled market test.
e. exploratory research.

Answers

A controlled study should be undertaken.

Businesses can legally employ only those workers who
A. were born in the united states
B. have immigrated to the united states before 2001
C.can show proof of eligibility to work in the united states
D. are willing to work for the accepted wages

Answers

Answer is C. Can show proof eligibility to work in the united states

Your whelcome

Businesses can legally employ only those workers who can show proof of eligibility to work in the United States. Hence,

What is employment law for businesses?

Employers and employees are subject to employment law regulations. It sets forth what employees are expected to perform, what they may be asked to do, and their rights while at work.

Even if an agreement is made orally and not in writing, it will still be enforceable against both parties. Don't worry if you've never received a written copy of your employment contract; you still have one, even if the terms were only suggested or verbally agreed upon.

Yes, sole proprietors are allowed to employ people as long as they continue to be the business's only owner. You won't need to form a limited business if you're a sole proprietor and wish to hire staff.

Thus, option C is correct.

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Evaluate when a laissez-faire style of management might provide an opportunity to provide customers with better customer service?

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Final answer:

Laissez-faire style of management can improve customer service in scenarios where employees are experienced, motivated, and can self-manage, such as a telecommuting environment. However, it's not ideal for more routinized industries like fast-food services, where employees have devalued roles with no decision-making opportunities.

Explanation:

A laissez-faire style of management might provide an opportunity to provide customers with better customer service in scenarios where the employees are experienced, highly motivated, and capable of self-management. It facilitates them to offer solutions tailored to specific customer needs because they are likely to have a deeper understanding of their tasks.

For example, telecommuting employees might greatly benefit from this style allowing them to work flexibly, resulting in improved efficiency and productivity. However, this approach is not universally applicable and can sometimes lead to the dissolution of the group and a lack of progress if the employees are not adequately self-disciplined or motivated. In contrast, in more routinized industries like fast food service, the McDonaldization model is more prevalent, which can discourage high-quality customer service due to the robotic nature of tasks.

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​a party who speaks with a reckless disregard for the truth not knowing of the falsity of his or her words cannot be liable for fraud.

Answers

Hey there,
The answer to your question is False

Hope this helps :))

~Top

Marketers of sunscreen tend to market the product more heavily in the midwest during summer months. this group of buyers is most likely being segmented by​ __________.marketers of sunscreen tend to market the product more heavily in the midwest during summer months. this group of buyers is most likely being segmented by​ __________.

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The sunscreen marketers segmented group of buyers probably by​ occasion segmentation where they tend to market the product more heavily in the Midwest during summer. Occasion segmentation is dividing the market into groups according to different occasions example: as when the consumers actually buy, plan to buy or use the product and others are assumed to be pertinent for a specific event, time or day.





According to the textbook, the five competitive forces included in the five forces model determine the average _______________.

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According to the textbook, the five competitive forces included in the five-forces model determine:


the average rate of return for the firms in an industry

The five competitive forces included in the five forces model determine the average rate of return for the firms in an industry

What is five forces model?

Porter's Five Forces model is a way of examining the operational environment of a competitor of a corporation. It uses industrial organization economics to extract five forces that control the level of competition and, consequently, the profitability of an industry.

Five forces analysis may help organizations make decisions about whether to enter a certain sector, whether to expand capacity in a particular industry, and how to establish competitive strategies by assisting them in understanding the elements driving profitability in that market.

Managers and analysts may better understand the competitive environment a company operates in and how it is positioned within it by using Porter's Five Forces Model.

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There were 14,058 million shares of this preferred stock outstanding throughout the year. determine the total dividends that bank of america paid during fiscal 2015. round answer to the nearest million.

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Bank of America, with 14,058 million common shares outstanding in 2015, and with dividends of $0.05 paid 4 times per share in 2015, the dividends paid overall in 2015 was $2,812 million.

The bureau of economic analysis reported that the u.s. capital stock was depreciation in

Answers

The depreciation happened in 2009. The capital stock of the US amounted to $3 trillion dollars but its value depreciated to $1.2 trillion dollars in the same year. During this time, the US was slowly recovering from a recession. They believe that the recession would continue until 2022

Do you have a concern with the class limits? explain and edit your class limits accordingly on the word document.

Answers

I think the class limits must be as small as possible cause in a enviroment with a low number of participants the learning process is more productive and all the doubts of each pupil could be solved easier and the results are great to get good marks, and understand all the subjects.

The _____ agency has been a major force in cleaning up u.s. waters.

Answers

The Environmental Protection Agency has been a major force in cleaning up U.S. waters. Environmental Protection Agency was created for the purpose of protecting human health and the environment by writing and enforcing regulations based on laws passed by Congress

In her work in the publishing industry, vera seeks out new authors who she considers promising. in the past two years she has found a number of new writers whose work she thought was exceptional, and immersed herself in the task of helping them shape their manuscripts for submission to her managers for publishing. although she was extremely proud of the results, none of the authors she worked with were chosen for publication. vera believes that the decision not to publish these authors was based on personal rivalries within management, rather than the quality of her writersʹ work. she is extremely frustrated, dreads coming into work each morning, and is seriously thinking of resigning. how can veraʹs job attitudes best be described?   2) _______
a.low job satisfaction and high job involvement   
b.high job satisfaction and low job involvement   
c.high job satisfaction and high job involvement   
d.low organizational commitment   
e.low job satisfaction and low job involvement

Answers

The answer would be a

Brick company decides to change its inventory cost flow method from fifo to lifo. what course(s) of action must brick take to be in conformity with gaap?

Answers

the answer is noted disclosure and effect on net income.
In accounting, disclosure contains note worthy  attachment that exist on organization's financial statement.
The things that're considered important enough to be included in disclosure should only the one that could influence the financial result significantly, such as the inventory recording method or when to recognize income.

The W-4 form is completed by an individual when he or she first starts a new job. What does this form help to determine?

Answers

The answer is: The amount of money that should be withheld in federal taxes

Most of employers is cooperating with the federal government to handle the tax payment of their employees.

To do this, the employers send out w-4 forms to be filled by each of their employees. The information in the w-4 help will be used by the IRS to determine the amount that should be withheld in federal tax. So every time you receive your salary, it would automatically be deducted with the tax payments.

You could also submit various information that can be considered as operational expense. This would reduce the amount of your tax and you can obtain tax refund from the IRS

Final answer:

The W-4 form is used to determine the amount of income tax that will be withheld from an individual’s paycheck, ensuring they pay the appropriate amount throughout the year according to the tax code.

Explanation:

The W-4 form is a critical document that an individual completes when starting a new job. Its purpose is to help determine the amount of income tax that will be withheld from an employee's paychecks. When filling out a W-4, it's essential to make selections that accurately reflect your tax situation. If too little is withheld, one may owe a significant amount when filing an annual tax return. Conversely, if too much is taken out, it would reduce your take-home pay but could result in a tax refund.

The IRS provides the 1040EZ tax form, among others, for filing annual taxes. The taxes you pay are based on adjusted gross income minus any deductions and exemptions you're entitled to. It's important to note that the U.S. federal tax code is extensive and complex, and the correct filling out of tax forms is a statement of financial responsibility that can have significant impact on your financial health.

​michelle's business produces ceramic cups using​ labor, clay, and a kiln. she produces cups using a fixed proportion of labor and​ clay, but regardless of how many cups she​ produces, she uses only one kiln. she can manufacture 3030 cups a day with one worker and 4848 with two workers. does her production process illustrate decreasing returns to scale or a diminishing marginal​ returns

Answers

Diminishing marginal returns - By investing in hiring an additional worker, Michelle does not receive twice the productivity compared to when she had only 1 worker. Productivity only increased by roughly 50%. I would consider the worker to be more of an investment, and thus count as diminishing marginal returns, rather than decreasing returns to scale, which I consider to apply more to assets, such as machines for manufacturing or in the case of the scenario, an additional kiln.

The income elasticity of demand for a food is unity. a consumer's monthly income is $2,000, of which 20 percent is spent on food. if income doubles, the amount spent on food will be:

Answers

When the income doubles from $2,000 to $4,000 and the income elasticity of demand for food is unity, the amount spent on food will double from the original 20 percent of income, resulting in $800 spent on food.

The question is asking about the concept of income elasticity of demand, which measures the responsiveness of demand for a good to changes in income. When the income elasticity of demand is equal to unity (1), this indicates that the percentage change in quantity demanded is equal to the percentage change in income. In this case, if the consumer's monthly income doubles from $2,000 to $4,000 and originally 20 percent of it is spent on food, then after the income doubles, the consumer will also double the amount spent on food.

The calculation is straightforward: initially, the consumer spends 20 percent of $2,000, which is $400. When the income doubles to $4,000, and the income elasticity of demand for food is unity, the consumer will now spend 20 percent of $4,000, which is $800 on food.

If the mean time between in-flight aircraft engine shutdowns is 12,500 operating hours, the 90th percentile of waiting times to the next shutdown will be:

Answers

Final answer:

The 90th percentile of a set of data is the point below which 90% of the values fall. But in order to calculate this percentile for the given problem, more data beyond just the mean time between shutdowns, for example, the standard deviation or the complete data set are required.

Explanation:

The student is basically asking for a calculation related to a concept in statistics, specifically percentiles. The 90th percentile of a set of data represents the point below which 90% of the observations may be found. However, the data provided in the question does not provide sufficient information to calculate the 90th percentile of flight engine shutdown waiting times. The mean time between in-flight engine shutdowns of 12,500 hours is given, but percentiles can not be calculated from means alone. Other details such as standard deviation or a data set are needed.

For illustration, if we have those details, as per standard normal distribution, the 90th percentile would typically fall around 1.28 standard deviations above the mean. But in this context, it's not possible to calculate the exact 90th percentile value without further data.

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Julio is able to put 5 numbers in the correct order as 2, 4, 6, 8, 10. this shows that julie understands the concept of

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Julio is able to put 5 numbers in the correct order as 2, 4, 6, 8, 10.  This shows that Julio understands the concept of arithmetic sequencing. An arithmetic sequence is a number pattern made by adding the same value each time.

In the short run, the average total cost curve slopes upward because of

Answers

Due to law of diminishing marginal returns,the average total cost curve slopes upward in short run.As production increases, a firm will become more efficient at producing a given good. This will cause its ATC to drop and at some point, due to the law of diminishing marginal returns, the ATC starts to increase once again
Final answer:

The short-run average total cost curve slopes upward because fixed costs are spread over more units as production increases, but eventually, diminishing marginal returns cause variable costs to increase faster, raising the average total cost.

Explanation:

In the short run, the average total cost curve slopes upward because there are fixed costs that do not change as the quantity of output is increased. Specifically, in the short term, only variable costs can be adjusted, while fixed costs remain the same regardless of the level of production. As more units are produced, these fixed costs are spread over more units, reducing the average fixed cost per unit. This is in contrast to the long-run average cost curve, which assumes that all factors of production, including fixed assets, can be varied, leading to economies of scale when production is increased.

When variable costs begin to outweigh the spreading effect of the fixed costs over a larger number of units, the average total cost begins to slope upward. This is often due to diminishing marginal returns, where each additional unit of input contributes less to the output than the previous unit, thus causing variable costs to rise at a faster rate than output, increasing the average total cost.

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You ran a little short on your spring break vacation, so you put $1,000 on your credit card. you can only afford to make the minimum payment of $20 per month. the interest rate on the credit card is 1.5 percent per month. how long will you need to pay off the$1,000? how much interest will you pay?

Answers

 Use the PV of an Annuity tables, where PV is $1,000, Annuity is $20, and Rate is 1.5%. But remember that the equation for this table is PV = Annuity x Factor. Since we know the PV and the Annuity, solve for the Factor. 

PV / Annuity = Factor, so $1,000 / $20 = 50 (the Factor). From the table, find where a Factor of 50 meets a rate of 1.5%. A factor of 49.9724 appears at 1.5% and 93 Periods. 

The formula for the PV of an Annuity is (1 - 1 / (1 + r)^n) / r. So 1,000 = (1 - 1 /(1.015)^n / .015. 
To solve for n gets too difficult

Analog computers needs to borrow $475,000 from the midland bank. the bank requires a 15% compensating balance. how much money will analog need to borrow in order to end up with $475,000 spendable cash? $546,250 $758,264 $558,824 $71,250

Answers

Final answer:

Analog Computers needs to borrow $558,824 in order to end up with $475,000 spendable cash.

Explanation:

In order to end up with $475,000 spendable cash, Analog Computers will need to borrow more than $475,000 from the Midland Bank due to the bank's requirement for a 15% compensating balance. The compensating balance is a portion of the loan that the borrower cannot access and is held by the bank as collateral. To determine the amount Analog Computers needs to borrow, we can use the formula:

Total loan amount = Spendable cash / (1 - Compensating balance)

Plugging in the values, the total loan amount Analog Computers needs to borrow would be:

Total loan amount = $475,000 / (1 - 0.15) = $475,000 / 0.85 = $558,824

Therefore, Analog Computers needs to borrow $558,824 in order to end up with $475,000 spendable cash.

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The ___ approach to job analysis immediately identifies the ksas required for the job

Answers

This is the operational approach. This allows the person to understand what knowledge, skills, and abilities would best suit the operations that the job entails. Having the right skillset is vital when looking for a job, because a bad fit in these categories can lead to degraded performance.

Homestead crafts, a distributor of handmade gifts, operates out of owner emma finn's house. at the end of the current period, emma reports she has: 1,300 units (products) in her basement, 20 of which were damaged by water and cannot be sold. 350 units in her van, ready to deliver per a customer order, terms fob destination. 80 units out on consignment to a friend who owns a retail store. how many units should emma include in her company's period-end inventory?

Answers

Final answer:

Emma should include 1,710 units in her company's period-end inventory, accounting for the items in her basement, van, and on consignment, while excluding the water-damaged goods.

Explanation:

When determining how many units should be included in Homestead Crafts' period-end inventory, Emma needs to consider the ownership of the goods. The 1,300 units in her basement must be evaluated, less the 20 units that were damaged by water and thus cannot be sold. The 350 units in the van for delivery should be included if the terms are FOB destination, indicating that these items remain in Emma's inventory until they are delivered. The 80 units on consignment should also be included because even though they are out of her physical possession, as long as they have not been sold, they are still part of her inventory.

Therefore, Emma should include a total of 1,710 units (1,300 basement units - 20 damaged units + 350 units in van + 80 consignment units) in her company's period-end inventory.

Give an example of a case where a cost and a revenue function do not have a break-even point.

Answers

Answer:

When profit margin exceed losses

Explanation:

Firstly Break even point is a point where revenue equals cost.

A typical example of a scenario where cost and revenue function does not have a break even point includes, when the profit margin of any given company or individual is higher when compared to the losses of the company or individual. For there to exist a break even point, company or individuals sales have to fall considerably such that revenue equals cost( no profit,no loss).

An example of a where the cost and revenue function does not have a break even point is when cost does not match the revenue or when the profit margin exceed the losses

Basically, the break even point is a point where revenue equals cost.

The break-even point is the point where there is no loss or gain on the firm's operation.

Break-even point are calculated by:

dividing the fixed costs by the (revenue per unit minus the variable cost per unit)dividing the fixed costs by the contribution margin.

In conclusion, an example of a where the cost and revenue function does not have a break even point is when cost does not match the revenue or when the profit margin exceed the losses.

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