What can infer about elasticity of demand for taxicab rides

Reference no: EM13237075

Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their fares 10 percent, and they anticipated that revenues would increase by about 10 percent as a result. However, when the commissioner granted the 10 percent increase, revenues increased by only about 5 percent. What can you infer about the elasticity of demand for taxicab rides?

Reference no: EM13237075

Questions Cloud

Compute the ph of a formic acid solution : Calculate the pH of a formic acid solution that contains 1.39% formic acid by mass. (Assume a density of 1.01 for the solution.)

Analyze the business-level strategies for mac cosmectics : Analyze the business-level strategies for MAC Cosmectics to determine the business-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice.

How do you handle this as the sales leader : Scenario - You work for a manufacturing company that has an annual revenue of $50 million. Your organization has experienced a 2% increase in sales for the past 5 years, however, the market average for your industry is a 7-10% growth per year.

Explain what is the value for deltas if 20g of a substance : what is the value for deltaS if 20g of a substance (MW=78.0g/mol) is boiled at 50 degrees C

What can infer about elasticity of demand for taxicab rides : Taxicab fares in most cities are regulated. Several years ago taxicab drivers in Boston obtained permission to raise their fares 10 percent, and they anticipated that revenues would increase by about 10 percent as a result.

What is the equation for the wave : A wave has the following properties: amplitude = 0.208 m, period = 0.687 s, wave speed = 13.7 m/s. The wave is traveling in the -x direction

State what other oxidizing agents may be used to carry out : Propose a reasonable reaction mechanism for the sodium hypochlorite oxidation of 3-heptanol. Give the IUPAC name of the expected product. What other oxidizing agents may be used to carry out this oxidation

Calculate the average velocity : A train is traveling due west with a velocity of 101.2 mph and then makes a turn to the northwest with a velocity of 95 mph

Under what condition can the agent afford to consume : Consider a static, Arrow-Debreu economy with N=2 states. Suppose that the market is complete and let P and 1-P be the price of the two Arrow-Debreu securities, b(1)=(1, 0), and b(2)=(0, 1), respectively.

User Account

All Pages