About the elasticity and cross price elasticity

Assignment Help Business Economics

Reference no: EM131244467

Assume that the train ticket price is $100 and 1000 passengers use train per day. 2000 passengers use buses and 5000 passengers use their own car. When the price of train ticket increases to $120; 800 passengers use train, 1800 passengers use bus and 5400 passengers use car. What can you say about the elasticity and cross price elasticity of these three transportation modes? Which modes are complement and which are substitute? Find the cross price elasticities.

Reference no: EM131244467

Questions Cloud

Perfectly competitive industry market price is found by : Suppose the price of an item in a perfectly competitive market is $3. For a firm in this market, MC = MR at an output of 100 units. The average total cost at this output level is $4 per unit, and TVC is $80. We may conclude that A perfectly competiti..

At time when demand for ready-to-eat cereal was stagnant : At a time when demand for ready-to-eat cereal was stagnant, a spokesperson for the cereal maker Kellogg’s was quoted as saying, “ . . . for the past several years, our individual company growth has come out of the other fellow’s hide.” Kellogg’s has ..

The marginal revenue curve of a perfectly competitive firm : The marginal revenue curve of a perfectly competitive firm

Learning activity-some of the ethical issues : When in Malaysia W.B. Milestone, Inc., a manufacturer of sophisticated computer parts, recently moved the operations of one of its divisions to Malaysia. The Company has hired several hundred workers at wages considerably below their U.S. counterpart..

About the elasticity and cross price elasticity : Assume that the train ticket price is $100 and 1000 passengers use train per day. 2000 passengers use buses and 5000 passengers use their own car. What can you say about the elasticity and cross price elasticity of these three transportation modes? W..

Introduce the debate surrounding abolition vs. equality : Introduce the debate surrounding abolition vs. equality and how it led to the American Civil War. Why were there significant fears about the impact of freed slaves in the North? Who had the most to win/lose?

Characteristics of less developed countries : Can you think of other common (not necessarily universal but widespread) characteristics of less developed countries not mentioned in the text? See if you can list four or five and briefly justify them.

Reduce its cost of producing the current level of output : Section II A firm uses steel and aluminum to produce auto parts. The current input mix used by the firm is such that the marginal product of aluminum is equal to 800 units, while the marginal product of steel is equal to 500 units. how this firm coul..

Long-run average cost curve is estimated by the equation : A firm’s long-run average cost curve is estimated by the equation: LAC = 1,000 – 2.5Q + 0.005Q2. What is the minimum efficient scale of production?

User Account

All Pages