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k0ka [10]
2 years ago
14

A city has built a bridge over a river and it decides to charge a toll to everyone who crosses. For one year, the city charges a

variety of different tolls and records information on how many drivers cross the bridge. The city thus gathers information about elasticity of demand. If the city wishes to raise as much revenue as possible from the tolls, where will the city decide to charge a toll: in the inelastic portion of the demand curve, the elastic portion of the demand curve, or the unit elastic portion? Explain.
Business
1 answer:
Tatiana [17]2 years ago
4 0

Answer: In the inelastic portion of the demand curve

Explanation:

The city will charge in the inelastic portion of the demand curve, because in that portion the percentage increase in price will be greater than the percentage decrease in demand. Therefore, the price increase will not only compensate for the decrease in demand but will also allow an increase in income.

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Karan works at a shoe store where the latest trends in shoes are displayed. Down the road from his store, two more stores opened
rosijanka [135]
A price WAR would happen...

0 0
2 years ago
Read 2 more answers
Which examples demonstrate common Financial and Investment Planning workplaces and employers? Check all
jenyasd209 [6]

Answer:

The correct answers are,

  • -Carmen Works in an investment companies office analyzing the level of risk that different Investments offer
  • -Luisa works at a stock exchange buying and selling securities for customers
  • -Ladonna is self-employed and meets with customer dinner office to provide Financial advice ​

Explanation:

financial advisory is an important aspect in the business world and is important for the companies and start ups to smartly and effectively utilize their finances.

most of the time, those who are in the profession of "financial advisory" are carefully monitored by regulatory bodies such as the securities and exchange commissions and related professional body.

in this scenario, investment officers and stock brokers are shown, all fall under the category of advisers.

3 0
2 years ago
Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sa
Alexeev081 [22]

Answer:

D.- 90,000 incremental sales revenues is closest to 70,000

Explanation:

the revenue for his new machine is 150,000 However, the revenues on his overnight film processing will decrease by 60%

Overnight film processing decreases:

100,000 x 60% = 60000 decrease in revenue

Net Effect: 150,000 - 60,00 = 90,000

Sales will increase by 90,000 Is important to notice we are asked for which is closest. Not the exact answer. We can conclude from the options that 70,000 is the closest option.

5 0
2 years ago
DT Motors paid its first annual dividend yesterday in the amount of $.15 a share. The company plans to double the dividend in ea
devlian [24]

Answer:

Price = $8.92

Explanation:

Dividend from yr1 to yr3 will be multiplied by 2 since it doubles per year;

D1 = $0.15*2 = $0.30

D2 = $0.30 *2 = $0.60

D3 = $0.60 *2 = $1.20

D4 (onwards) = $1.50

Next, find the present value (PV) of each dividend;

PV(D1) = 0.30/(1.138) = 0.2636

PV (D2) = 0.60/(1.138²)= 0.4633

PV(D3 ) = 1.20/ (1.138³) = 0.8142

PV(D4 onwards) = \frac{[\frac{1.50}{0.138} ]}{1.138^{3} } = 7.3754

To find the price of the stock today, sum up present values above;

= 0.2636 + 0.4633 + 0.8142 + 7.3754

Price = $8.92

5 0
3 years ago
Ziva is an organic lettuce farmer, but she also spends part of her day as a professional organizing consultant. As a consultant,
Kaylis [27]

Answer:

The correct answer is:

-$80 (d.)

Explanation:

in order to calculate this, we have to determine the total income earned from farming, and the total income that could have been earned if Ziva had done her consultancy service, and calculate the difference. This is shown as follows:

farming business

cost of seeds = $130

income from seeds = $300

Net income from farming = 300 - 130 = $170

Home-organizing service

charge per hour = $25

time spent on field that would have been used for consultancy = 10 hours

total amount that would have been earned for consultancy = 25 × 10 = $250

Difference between income earned for farming and the income that would have been earned for home-organizing serving = 170 - 250 = -$80

Note that the negative sign is there because Ziva indulged in the activity with the lesser income so she effectively made an economic loss instead of  a profit (she made a negative profit).

7 0
2 years ago
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