Currently, 1600 people ride a certain commuter train each day and pay $16 for a ticket. The number of people q willing to ride the train at price p is q=400 (8-√p). The railroad would like to increase its revenue. (a) Is demand elastic or inelastic at p = 16? (b) Should the price of a ticket be raised or lowered? (a) Choose the elasticity of the demand below. O neither O elastic O inelastic (b) What should the railroad do to increase revenue? O The price should be raised. O The price should be lowered.

Currently, 1600 people ride a certain commuter train each day and pay $16 for a ticket. The number of people q willing to ride the train at price p is q=400 (8-√p). The railroad would like to increase its revenue. (a) Is demand elastic or inelastic at p = 16? (b) Should the price of a ticket be raised or lowered? (a) Choose the elasticity of the demand below. O neither O elastic O inelastic (b) What should the railroad do to increase revenue? O The price should be raised. O The price should be lowered.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Imagine the scenario: Theaters are open after COVID-19! Your friend is excited to watch a movie in the theaters but she is busy during weekdays when the price is $5.00 during weekday afternoon matinee hours whereas the same movie costs $11 during weekends. Can you explain this difference in ticket prices as a potential economist in terms of Elasticity? Q1 (b) As per the additional/OPTIONAL article HowMuchFansPaidForKobeBryantLastGame, what was the price paid for court side seat? ((ANSWER IN 1 LINE ONLY) Q1 (c) According to the additional/OPTIONAL article "MinimumWageUnemploymentMcdonalds", what effect did the wage increase have on McDonalds employees and Big Mac prices? (EXPLAIN IN 1-2 LINES ONLY.) Edit View Insert Format Tools Table 12pt YParagraph. MacBook Pro F2 02 000 F4 F5 F8 F10 $ 4. # 5 3. 9. 8. E.
Suppose the elasticity of demand for good A is -0.40, and the elasticity of supply for good A is 1.00. If supply were to increase by 10%, what would happen to the price? O It would fall by 7.14%. It would fall by 1.67%. It would fall by 25%. It would fall by 14%. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
do fast
Solve all please and g give answer to true false question also with reason and get like otherwise dislike. Hand written solutions are strictly prohibited.
Given a demand function of Qd= 20 - 4P + 0.7 Y, where P is price and Y is income: What is the price elasticiy of demand (PED) at a Price of $1.00 and Quantity of 9 million bushels? A. -0.44 B. -1.00 C. -1.71
- Given the demand function D(p) = √√/375 – 4p, Find the Elasticity of Demand at a price of $22 At this price, we would say the demand is: ○ Elastic ○ Unitary O Inelastic Based on this, to increase revenue we should: Raise Prices O Keep Prices Unchanged O Lower Prices
Consider a demand curve that is a straight downward-sloping line and has its midpoint at a price of $4 and a quantity of 8 million units. At a price of $2, price elasticity of demand would be: O unit elastic O inelastic elastic O none of the above, or not enough information given to answer the question
In an effort to curb gun violence, some US cities are implementing gun buyback programs. Localpolice departments will buy back guns from the public, no questions asked. For such programs to beeffective, what must be true about the elasticity of demand and supply? Explain your reasoning withdemand-supply diagrams.
1. Optimal choice of capital Eleanor makes sweaters in her home. Starting with just some knitting needles and yarn, she was able to knit 60 sweaters per year. Now some local stores have expressed interest in her designs and offered to buy her sweaters for $10 each. This makes it worthwhile for her to invest in some capital; in particular, she could produce many more sweaters if she invested in one or more looms, as shown in the following table. Assume that Eleanor's sweater business is a perfectly competitive firm. Complete the following table by calculating the marginal physical product (MPP) of each loom and the marginal revenue product (MRP) of each loom. Quantity of Input (Looms) Output (Sweaters per year) MPP of Each Loom (Sweaters) MRP of Each Loom (Dollars) 0 1 2 3 4 5 60 110 150 184 213 238 50 40 34 29 25 If the rental price of a loom is $270 per year, Eleanor should use 500 400 340 290 250 Suppose the demand for sweaters is very elastic, while the demand for cigarettes is very…
Question 6 = Given the demand function D(p) = /350 - 2p, Find the Elasticity of Demand at a price of $11 At this price, we would say the demand is: Inelastic O Elastic O Unitary Based on this, to increase revenue we should: O Keep Prices Unchanged O Lower Prices Raise Prices
5. this question is too complicated
1. As a transit planner for the city of Miami, you must predict how many people ride the Miami Metrorail and how much money is generated from train fares. According to a recent study, the short-run elasticity of demand for Metrorail is 0.62 and the long- run elasticity is 1.59. The current ridership is 50,000 people per day. Suppose the city commission decides to increase fares by 10%. Predict the changes in train ridership over a one-month period and a five-year period. ANS: b. Over the one-month period, will total revenue increase or decrease? What will happen in the five-year period? ANS