What can infer about elasticity of demand for taxicab rides

Reference no: EM13238469

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: EM13238469

Questions Cloud

Calculate profit maximizing activity level nd optimal profit : TC= 41,000,000+0.005Q 2 MC= TC/ Q =$500 +0.01Q calculate profit maximizing activity level and optimal profit, and optimal profit as percentage of sales revenue. profit maximization problem

What will be the rate of return eventually earned by firm : There are 300 purely competitive farms in the local dairy market. Of the 300 dairy farms, 298 have a cost structure that generates profits of $24 for every $300 invested. What is their percentage of rate of return.

Estimate of costs and benefits when it is so hard to measure : There is a great deal of uncertainty about how likely it is that we will experience a bio-terrorist attack using smallpox. Does it still make sense to rely on estimates of costs and benefits when it is so hard to measure them

Explain how many grams of nacl can be produced : How many grams of NaCl can be produced from the reaction of 1.35g of Na2CO3 with 125mL of 0.265M HCl according to the following reaction

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.

Define the hypothetico-deduction method of investigation : Companies are interested in acquiring other firms even when the latter operate in totally unrelated realms of business. For instancce, Highways Industries manufacturing asphalt materials for road construction, acquired VIP Transport Ltd

Explain how can consumers become better educated : Should the Government increase, decrease or remain the same in its level of intervention when it comes to mandating that companies provide product information to consumers What happened to "caveat emptor" (buyer beware)

Explain important to remove mercury and sulfur compounds : To reduce pollution when coal is burned, it is important to remove mercury and sulfur compounds from the effluent. Identify which, ifany, ofthe following redox reactions are spontaneous under standard conditions and therefore might be used for thi..

Compute the molarity of ammonium bromide solution : Calculate the molarity of ammonium bromide solution. Use the molarity of the solution to find the mass of ammonium bromide in 1.00 L of this solution.

User Account

All Pages