Suppose a subway line determines it can charge different prices to riders during rush hour and riders who travel on the weekend or during off-peak hours. The subway line's goal is to increase total revenue. The price elasticity of demand for riders during rush hour is - 0.70, and the price elasticity of demand for off-peak travelers is - 2.10. Based on the price elasticity of demand for each group of people, how should the subway line adjust its prices? Choose one:
A. Lower the price for off-peak travelers, and raise the price for riders during rush hour.
B. Lower the price for off-peak travelers, and keep the price the same for riders during rush hour.
C. Raise the price for off-peak travelers, and keep the price the same for riders during rush hour.
D. Raise the price for off-peak travelers, and lower the price for riders during rush hour.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose a subway line determines it can charge different prices to riders during rush hour and riders who travel on the weekend or during ...” 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
Tyneka inherited 1,000 shares of Aqua, Inc. stock from Joe. Joe's basis was $35,000, and the fair market value on July 1, 2019 (the date of death) was $45,000. The shares were distributed to Tyneka on July 15, 2019.
Answers (1)
their major products, the plastic container. Budgeted quantity Budgeted price Direct materials 0.25 pounds $30 per pound Direct labor 0.
Answers (1)
Erica Jenson has a limited budget for the market research she needs to conduct; however, the sample size for her research is quite large.
Answers (1)
Two of the most important roles that small business owners play are: a. monitor and spokesperson. b. spokesperson and entrepreneur. c. figurehead and liaison. d. resource allocator and disseminator.
Answers (1)
Mark owns a ranch in colorado that costs $3.76 million per year to operate. of that, his explicit cost equals $3.29 million. therefore, his actual monetary cost of running the ranch is:
Answers (1)
New Questions in Business
Thirty-two new employees from Market Enterprises are attending orientation, receiving information about company policies, and filling out various forms. These employees comprise a group. 1. True2. False
Answers (1)
Which of the following statements is true? a. The required return on a firm's common stock is, in theory, determined solely by its market risk.
Answers (1)
Jack is preparing for a party and makes potato salad, but he does not realize that the salad contains one escherichia coli bacterium. he accidentally leaves the salad out of the refrigerator for 2 hours. if e.
Answers (1)
You feel that you will need $2.8 million in your retirement account and when you reach that amount, you plan to retire. You feel you can earn an APR of 10.8 percent compounded monthly and plan to save $395 per month until you reach your goal.
Answers (1)
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 and December 31 adjusted trial balances include the following account information:30-Nov 31-Decdebit credit debit creditsupplies $ 2,000 $ 3,500 prepaid
Answers (1)