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MaRussiya [10]
2 years ago
14

Consider two cities, City A and City B, which are entirely identical except that Uber operates in City A, but not in City B. Con

sumers in City A can choose between Uber and a taxi when selecting a means of transport, while consumers in City B can travel only via taxi. When the government imposes a tax on taxis in City A and City B, the price of a taxi ride will increase _______ in City A than in City B.
Business
1 answer:
Pepsi [2]2 years ago
5 0

Answer:

Less

Explanation:

In the given scenario taxi prices will go up less in City A than City B. This is because in City A we have both Uber and taxis, and there is substitution. If customers don't have taxis they will commute by Uber. So demand for taxis in City A will be elastic. An increase in price will result in a large decrease in demand. Taxi drivers will cautiously increase prices here.

In City B the only option for commuters is the taxi, so the demand will be inelastic. As price increases there is relatively little change in quantity demanded. Taxi drivers can increase prices more here without losing customers.

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Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost
Tcecarenko [31]

Answer:

The depreciation cost of the bus per unit is $ 1.4 which is purchased on January 1, 2019.

Explanation:

The depreciation cost per unit is computed as:

Depreciable asset = Cost - Salvage Value

                               = $205,860 - $7,900

                               = $197,960

Depreciation per unit = Depreciable asset /Useful life expected value

                                    = $197,960 / 141,400

                                    = $1.4

Therefore, the per unit cost is $1.4

8 0
2 years ago
White & Checker is releasing a new power drill that requires the manufacturing of a new part.They are considering whether th
gizmo_the_mogwai [7]

Answer:

A

Explanation:

Breakeven quantity is the number of units produced and sold at which net income is zero

The product should not be released because the demand is less than breakeven quantity. If the product is released, the firm would earn losses

8 0
2 years ago
Which of the following can cause an increase in the price of a discount bond? a. An increase in the YTM. b. A decrease in the YT
eduard

Answer:

b. A decrease in the YTM.

Explanation:

Price of the bond is calculated using present value of future cash flows. while calculating present values of the cash flows or price of the bond, we use YTM for discount purpose. As we that higher rate gives lower Present value and Lower rate gives higher present value. Interest rate behave inversely with present value. So the reduction in YTM will increase the price of the bond.

3 0
2 years ago
During Year 6, Kincaid, Inc. earned $85,000 of cash revenue. The company incurs all operating expenses on account. The Year 6 be
igomit [66]

Answer:

a.  Amount of operating expenses recognized during the accounting period = Account payable closing balance + Cash payment - Opening balance

= $25,000 + $40,000 - $2,000

= $63,000

b.  Net income earned during the accounting period = Cash revenue - Amount of operating expenses recognized

=  $85,000 - $63,000

= $22,000

C.  Amount of cash flow from operating activities =  Net income + Increase in current liability  

= $22,000 + ($25,000 - $2,000)

= $45,000

6 0
1 year ago
Ethanol and sugar are both made from sugarcane, and ethanol can be used as a fuel substitute for oil. Increasing oil prices caus
Nina [5.8K]

Answer:

The answer is: the <u>supply of</u> sugar to <u>decrease</u> and its price to <u>increase</u>.

Explanation:

Factories that process sugarcane have to decide what quantities will they produce of sugar and ethanol. If they produce sugar, they can'y produce ethanol, and vice versa.  

So when the price of ethanol increases, sugarcane factories will increase the quantity supplied of ethanol, therefore reducing the quantity supplied of sugar. Since the quantity supplied of sugar decrease by external factors not related to its demand, then the price of sugar will increase since the quantity demanded will be more than the quantity supplied.

6 0
2 years ago
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