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Author Question: The cab fare in Horseville is regulated. Recently, the government decided to raise it from 2.00 to ... (Read 114 times)

EY67

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on: Jun 29, 2018
The cab fare in Horseville is regulated. Recently, the government decided to raise it from 2.00 to 2.50 per ride. After this rise in fare, cab ridership decreased by 10 percent.
 
  a) What is the price elasticity of demand for cab rides in Horseville? (Use the midpoint formula to calculate the percentage change in the price.) Is the demand for rides elastic or inelastic? b) According to your estimate, what happened to the cab drivers' revenue after the fare rose? Explain. c) Why might your estimate of elasticity be inaccurate?

Question 2

Individuals making decisions about how much to purchase of a product with an external benefit base their decisions on which of the following?
 
  A) the price and marginal private benefit
  B) the economically efficient output
  C) the price and the marginal social benefit
  D) the size of the deadweight loss
Foundations of Microeconomics ¦ Bade, Parkin ¦ 8th Edition
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Jbrasil

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Reply #1 on: Jun 29, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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EY67

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Reply #2 on: Jun 29, 2018
Thank you :)


Jbrasil

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Reply #3 on: Jun 29, 2018
Happy to help you


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