Homework Answers
Ans.- (D)
EXPLANATION:
Price elasticity of demand shows the 1% change in quantity demanded in response to a 1% change in price.
Here,price elasticity of -0.9 means 1% decrease in price will lead to 0.9% increase in quantity demanded.
So, if the price is reduced by 10% ,the number of bus tickets sold would increase by 9%.
Add Answer to:
Research provided to the management of a bus company, which provides an express bus service from...
x Give Up? t Score: 10 of 19 > The Acmeville Metropolitan Bus Service currently charges...
x Give Up? t Score: 10 of 19 > 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...
The Acmeville Metropolitan Bus Service currently charges $0.77 for an all-day ticket, and has an average...
The Acmeville Metropolitan Bus Service currently charges $0.77 for an all-day ticket, and has an average of 623 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. Thev must therefore find a way to increase revenues The bus company is considering increasing the ticket price to S0.99. The marketing department's studies indicate this price increase would reduce usage to 359...
The Acmeville Metropolitan Bus Service currently charges $0.88 for an all-day ticket, and has an average...
The Acmeville Metropolitan Bus Service currently charges $0.88 for an all-day ticket, and has an average of 623 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 $1.1. The marketing department's studies indicate this price increase would reduce usage to 333...
The Acmeville Metropolitan Bus Service currently charges $0.77 for an all-day ticket, and has an average...
The Acmeville Metropolitan Bus Service currently charges $0.77 for an all-day ticket, and has an average of 472 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 $0.88. The marketing department's studies indicate this price increase would reduce usage to 208...
You are the pricing manager for a bus tour company which sells tickets to tourists for...
You are the pricing manager for a bus tour company which sells tickets to tourists for bus tours of major cities. The current price for a bus tour is $10 per ticket. On average, you sell 10,000 tickets per month. You are contemplating raising the price for a ticket to $12 per ticket. You estimate that the number of tickets sold will fall to 9,000 tickets per month. Your variable costs are $3 per ticket. Your fixed costs are $50,000...
The city bus company usually transports 12000 riders per day at a ticket price of $1
The city bus company usually transports 12000 riders per day at a ticket price of $1. The company wants to raise the tickets price and knows that for every 10 cents increase, the number of riders decreases by 400.A. What price for a ticket will maximize revenue?pls help
Consider the demand for leisure air travel versus business air travel. a. Which of those...
Consider the demand for leisure air travel versus business air travel. a. Which of those two would have a more elastic demand? Base your answers on the determinants of the price elasticity of demand. (Omit any discussion of factors that would not be relevant to leisure or business air travel). b. What would airlines do in terms of their ticket prices for leisure versus business travel if they wanted to increase their total revenue? Explain your reasoning. c....
17. The price of candy bars sold from vending machines at the Duluth airport has increased...
17. The price of candy bars sold from vending machines at the Duluth airport has increased by 50%. If the same number of candy bars are sold after the price increase this means: a. people flying from Duluth do not have good nutritional information. b. candy bar purchases represent a large fraction of travelers' budgets. c. there are few other places to purchase candy bars at the airport. d. the price elasticity of demand for candy bars is equal to...
You are Marketing Manager for Regal Entertainment, the largest movie-chain company in the United States. You...
You are Marketing Manager for Regal Entertainment, the largest movie-chain company in the United States. You know that the number of movie tickets sold annually by Regal (“quantity demanded”) depends on the price that Regal charges (dollars per ticket) and on the average income of movie-goers (dollars per year). Your staff presents you with the following portion of the demand schedule, given this-year’s income. Price (dollars per ticket) Quantity Demanded (millions of tickets per year) 22 12 18 20 3....
Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services...
Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawall. A single Los Angeles to Kona round-trip flight has the operating statistics: Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business dass Variable cost per passengermeconomy class Round-trip ticket price-business class Round-trip ticket price economy class $7.000 3,200 3,480 140 120 800 300 It is assumed that the fuel, crew salaries, and äirplane deprediation are fixed,...
x Give Up? t Score: 10 of 19 > 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...
The Acmeville Metropolitan Bus Service currently charges $0.77 for an all-day ticket, and has an average of 623 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. Thev must therefore find a way to increase revenues The bus company is considering increasing the ticket price to S0.99. The marketing department's studies indicate this price increase would reduce usage to 359...
17. The price of candy bars sold from vending machines at the Duluth airport has increased by 50%. If the same number of candy bars are sold after the price increase this means: a. people flying from Duluth do not have good nutritional information. b. candy bar purchases represent a large fraction of travelers' budgets. c. there are few other places to purchase candy bars at the airport. d. the price elasticity of demand for candy bars is equal to...
Break-Even Sales and Sales Mix for a Service Company Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawall. A single Los Angeles to Kona round-trip flight has the operating statistics: Fuel Flight crew salaries Airplane depreciation Variable cost per passenger-business dass Variable cost per passengermeconomy class Round-trip ticket price-business class Round-trip ticket price economy class $7.000 3,200 3,480 140 120 800 300 It is assumed that the fuel, crew salaries, and äirplane deprediation are fixed,...
Most questions answered within 3 hours.
-
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 10 minutes ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 1 hour ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 1 hour ago -
implement a program that reads a number of rows and a symbol.
The program will draw...
asked 1 hour ago -
Assume that when adults with smartphones are randomly selected,
45% use them in meetings or classes....
asked 1 hour ago -
Determine the number of formula units of
Na2SO4 and moles of oxygen contained in 8.11
moles...
asked 2 hours ago -
Explain in steps on the following code
What would be the output when executed
using System;...
asked 2 hours ago -
Given the information in the table, which of the following
statements is CORRECT?
Stock A
Stock...
asked 2 hours ago -
Write MARIE assembly language programs that do the following:
Write a program that inputs an integer...
asked 2 hours ago -
Explain an understanding of services and protocols.
Explain the job of DNS.
Explain the three email...
asked 2 hours ago -
(As soon as possible) Balance each of the following equations
according to the half-reaction method:
H2O2(aq)...
asked 2 hours ago -
A thin rod with a mass of 3.5kg and a length L=1.5 m is oriented
horizontally....
asked 2 hours ago