Officials at city bus corporation increased faresprices, Ask an Expert

Economics

Officials at City Bus Corporation increased fares(prices last year and were surprised to find that total revenue fell that year instead of increasingas expected. This tells us that

A) the demand for bus rides is income elastic.

B) the demand for bus rides is price inelastic.

C) the demand for bus rides is price elastic.

D) bus rides are inferior goods.

E) someone at City Bus Corp. is embezzling funds because a fare increase should havemeant an increase in total revenue.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91725194

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question few years ago delta airlines and northwest

Question: Few years ago, Delta Airlines and Northwest Airlines merged together and created the largest airlines in the world. The logic was to be more efficient and improve profitability. Briefly explain how the merger c ...

Question sam can sell all of the output he wants at a price

Question: Sam can sell all of the output he wants at a price of $1000. He has the following cost function: TC = 200,000 + 80Q + .08Q 2 Calculate the profit maximizing quantity. Calculate the maximum profits of the firm. ...

Question international businesswhat are the types

Question: (International business) What are the types contractual arrangements that multinational companies (MNC) can establish? and explain how money is moved around what are MNC's ethics and social responsibilities? Th ...

Question suppose ford motor company issues a five year bond

Question: Suppose Ford Motor Company issues a five year bond with a face value of $5,000 that pays an annual coupon payment of $150. a. What is the interest rate Ford is paying on the borrowed funds? b. Suppose the marke ...

Question you are running a small prototype pca shop and you

Question: You are running a small prototype PCA shop, and you need to borrow money to buy a new pick and place assembly machine. Your bank offers to lend you $100,000 for 10 years. You must pay $14.903 per year to pay of ...

Question in august 2002 preliminary data showed that

Question: In August 2002, preliminary data showed that payroll employment rose 39,000, household employment rose 429,000, and the unemployment rate fell from 5.9% to 5.7%. (A) Based on these data, what conclusion would y ...

Discussion wilderness backpacking expeditionsfor this

Discussion: Wilderness Backpacking Expeditions For this discussion imagine that you and some friends want to start a business to take tourists on wilderness backpacking expeditions. You have to use your own money to star ...

Question what is profit management how is it different from

Question: What is profit management? How is it different from cost or loss management? How does Mises' system of dividing components of business help direct profits to efficient units? How does this relate to decision ri ...

Quesiton the catch-phrase of the eitc is make work pay to

Quesiton: The catch-phrase of the EITC is "Make work pay." To what extent does the EITC achieve its goal of encouraging work among low-income individuals? Are the results in line with predictions from economic theory? Ca ...

Question there are conflicting answers to this online

Question: There are conflicting answers to this online. Please, only respond if you are certain of your answers, and can explain. Don't just paste what is already out there. I'm trying to learn. Suppose that the interest ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert