The demand for monorail service on the Utarek monorail, which links the three urbynes (or districts) of Utarek on Mars, can be approximated by qlp) = 5.5 + 50 million rides per day (3 sps 8), where p is the cost per ride in zonars (7).t (a) Graph the demand function. q (p) 30 9(p) q(p) 3야 30 25 25 25 20 20 20 15 15 15 10 10 10 5. 5 8. q(p) 30 25 20 15 10 (b) What is the result on demand if the cost per ride is decreased from 7.00 to 7 4.007 (Round your answers to one decimal place.) Since q(7) = | ]and q(4) = [ ], the demand -Select--- : (c) If the demand function is extrapolated, what does its graph suggest will be the effect of increasing the price to extremely large values? Ridership decreases toward 5.5 million rides per day. O Ridership stabilizes at 50 million rides per day. O Ridership increases toward 5.5 million rides per day. O Ridership decreases toward 50 million rides per day. O Ridership increases toward 50 million rides per day.
The demand for monorail service on the Utarek monorail, which links the three urbynes (or districts) of Utarek on Mars, can be approximated by qlp) = 5.5 + 50 million rides per day (3 sps 8), where p is the cost per ride in zonars (7).t (a) Graph the demand function. q (p) 30 9(p) q(p) 3야 30 25 25 25 20 20 20 15 15 15 10 10 10 5. 5 8. q(p) 30 25 20 15 10 (b) What is the result on demand if the cost per ride is decreased from 7.00 to 7 4.007 (Round your answers to one decimal place.) Since q(7) = | ]and q(4) = [ ], the demand -Select--- : (c) If the demand function is extrapolated, what does its graph suggest will be the effect of increasing the price to extremely large values? Ridership decreases toward 5.5 million rides per day. O Ridership stabilizes at 50 million rides per day. O Ridership increases toward 5.5 million rides per day. O Ridership decreases toward 50 million rides per day. O Ridership increases toward 50 million rides per day.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter14: Pricing Techniques And Analysis
Section: Chapter Questions
Problem 2E: The price elasticity of demand for air travel differs radically from first-class (1.3) to...
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