The Acmeville Metropolitan Bus Service currently charges $ 0.67 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 $ 0.78. The marketing department's studies indicate this price increase would reduce usage to 182 riders per day. Calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method. Round your answer to one decimal place.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “The Acmeville Metropolitan Bus Service currently charges $ 0.67 for an all-day ticket, and has an average of 472 riders a day. The bus ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Andrew initially worked with a travel website for few months and then became self-employed by starting a martial arts school, where he taught karate to teenagers. After an year, he closed the school and joined an advertising firm.
Answers (1)
What is the purpose of design thinking?
Answers (1)
Which occurrence could cause the demand curve for cars in your city to shift to the left?
Answers (1)
The fundamental reason why most supply curves are upward sloping is that Group of answer choices a higher price never reduces quantity supplied by enough to lower total revenue and so higher production is motivated.
Answers (1)
Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. The Pound Co. paid the invoice within the discount period. What is the sales amount to be recorded in the above transactions?
Answers (2)
New Questions in Business
Which of the following is a common way to describe a product that is being offered for sale? in the market on the market on exchange in business
Answers (1)
If a change in government regulations allows banks to start paying interest on checking accounts, this will: increase the demand for currency but decrease the demand for checking accounts. decrease the demand for money. increase the demand for money.
Answers (2)
Which is most likely cause for rapid increase in number of interest groups in recent decades?
Answers (1)
Telecommuting is an example of flextime. true or false?
Answers (1)
A firm's weighted average cost of capital is a function of (1) the individual costs of capital, (2) the capital structure mix, and (3) the level of financing necessary to make the investment. True False
Answers (1)