Calculate the cross elasticity of demand for rental cars

Assignment Help Business Economics

Reference no: EM133428572

Question: "Suppose that you own a car rental and you currently rent out an average of 164 cars per month. The national passenger train transportation company sells tickets for domestic trips at 24.50€ per ticket. For the summer, the company decides to decrease the ticket price for domestic trips to 15€ per ticket for the season. As a result, you rent out an average of 112 cars per month during the summer season."

a) Calculate the cross elasticity of demand for rental cars.

b) Are rental cars and train tickets substitutes, complements, or independent of each other?

Reference no: EM133428572

Questions Cloud

Compare and contrast the difficulties in arriving : Compare and contrast the difficulties in arriving at subjective quality weights for calculating QALY's and arriving at a statistical value of life (SVL) needed

Discuss three habits or behaviors you think every good : discuss three habits or behaviors you think every "good" student should have. At least one of these habits must relate directly to students taking online

State the objectives of the business firm that can lead : State the objectives of the business firm that can lead to abnormal (above-normal) pro?ts. Explain why pursuing a specific objective can generate above

Aspects of communication group dynamics and human behavior : How does a social development course provide insight into different aspects of communication, relationships, group dynamics, and human behavior?

Calculate the cross elasticity of demand for rental cars : Calculate the cross elasticity of demand for rental cars. Are rental cars and train tickets substitutes, complements, or independent of each other?

Discuss the social constructionists view : Discuss the similarities and differences between the Social Constructionist's view and Critical Realist's view on social work. REF- Houston, S. (2001).

Assess strengths-challenges regarding interpersonal skills : Challenges regarding interpersonal skills. What tools and techniques have you utilized to help you better engage clients in your field placement?

What are the dangers of preventative war : What is the difference between preemptive war and preventative war? What are the dangers of preventative war? Can preventative war ever be justified?

What programs were developed from this policy : Explain how the policy is addressed at the federal, state, and local level. What programs were developed from this policy?

User Account

All Pages