Social Studies, 10.03.2020 07:53 TheChosenOne9050

Problems and Applications Q8 Suppose subway ridership in New York City rose by 8 percent after a fare decrease of 25 cents to $2.50. Using the midpoint method, an estimate of the price elasticity of demand for subway rides is . True or False: According to your estimate, the Transit Authority's revenue rises when the fare decreases. True False

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Answer from: zahraa244

-0.85

False.

Explanation: Price Elasticity of Demand = $\frac{Percentage change in Quantity}{Percentage change in price}$

Percentage change in price = $\frac{New Price- Original Price}{Average Price}$

Average Price = $\frac{New Price + Old Price}{2}$

Old Price = 0.25 + New Price (2.5) = 2.75

Average Price = $\frac{2.75 +2.50}{2}$

= $\frac{5.25}{2}$

=2.625

Percentage change in price = $\frac{New Price- Original Price}{Average Price}$

= $\frac{2.50-2.75}{2.65}$

= $\frac{-0.25}{2.65}$

=-0.094

Price Elasticity of Demand = $\frac{Percentage change in Quantity}{Percentage change in price}$

Price Elasticity of Demand= 8%/0.094 = $\frac{0.08}{-0.094}$

=-0.85

B. False, the Transit Authority's revenue rises when the fare increases. The price elasticity of demand for subway rides is less than 1, meaning that demand is price inelastic and a change in price creates a smaller change in quantity demanded. If fares decrease, revenue decreases. If fares increase, revenue increases. Prices should be raised to increase revenue.

Answer from: Quest

this is an outline for the decisions that frankie is going to make

opportunity cost

willingness to buy

price or quality

of course, there could be many economic strategies that should be considered important while making decision. opportunity cost is the foremost significant factor while considering any economic option. when you buy something, you should know how much you are forgoing for this product. indeed, you could buy something different with this measure if you changed your mind. willingness to buy shows how much surplus you are earning while making a decision. it is important because it shows you buy what you want or you buy because you have only limited amount of money. the price or quality can be considered as a general economic option that we are applying while buying something. when you buy something, price or quality could be one of the options. indeed, they define the characteristics of the product.

mark brainliest!

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all people shall have equal rights upon birth and ever after. (when referring to the rights of man the declaration of the rights of man only applied to landowning men who were 25 years or older and paid taxes equal to 3 days worth of work and were not servants.

explanation: hope this

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Problems and Applications Q8 Suppose subway ridership in New York City rose by 8 percent after a far...

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