Homewörk: 2) Problem / Due Friday, September 25: The New York Times reported... That subway ridership declined by five (5) million fewer riders in December, 1995, the first full month after the price of the token increased $.75 to $2.00 (+60%) than in the previous December. This resulted in a 20 % decline in riders. Regarding output, supply increased by 15 %; > With the information above ===> estimate the Price elasticity of Demand (PED) for subway rides; What about the Price elasticity of Supply ? (PES) > According to your analysis, what happens to the Transit Authority's total revenue when the fåre rises? Explain ? > Why might your initial elasticity (PED) and (PES) calculations be unreliable?

Homewörk: 2) Problem / Due Friday, September 25: The New York Times reported... That subway ridership declined by five (5) million fewer riders in December, 1995, the first full month after the price of the token increased $.75 to $2.00 (+60%) than in the previous December. This resulted in a 20 % decline in riders. Regarding output, supply increased by 15 %; > With the information above ===> estimate the Price elasticity of Demand (PED) for subway rides; What about the Price elasticity of Supply ? (PES) > According to your analysis, what happens to the Transit Authority's total revenue when the fåre rises? Explain ? > Why might your initial elasticity (PED) and (PES) calculations be unreliable?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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