Question

In: Economics

11. Many proponents of public transit argue that the service should be provided free to the...

11. Many proponents of public transit argue that the service should be provided free to the public in metropolitan areas in order to reduce pollution and traffic congestion. Estimates by economists found the price elasticity of demand for public transit to be 0.17. The economists also found the cross-price elasticity of demand with the automobile to be 0.10.

a. What will free public transit mean to the use of the public transportation service?

b. What will free public transit mean to the use of the automobile?

12. What would happen to the demand curve in each of the following cases:

a. income rises

b. the number of customers rises

c. the number of substitutes increases

d. people expect that the price of the good will decline in the near future

e. people expect that the price of the good will rise in the future

13. For each of the following pairs of goods or services, identify the one for which the price elasticity of demand is greater and explain why.

• Coffee/Starbucks coffee

• Tuition at a public university/tuition at a private university

• Emergency room medical service/annual physical exam

• Movies in the afternoon/movies at night

• Prescription medicine/over-the-counter medicine

Solutions

Expert Solution

Rahul Sunny answered 2 years ago
Next > < Previous

Related Solutions

The analytics department of a public transit service group is trying to forecast the future number...
The analytics department of a public transit service group is trying to forecast the future number of passengers using the University subway station during the Fall term. During the first 10 days of September, the team count the number of passengers entering and exiting the station between 8:00am to 10:00pm. Day   # Passengers 1   2250 2   2100 3   2150 4   2450 5   2250 6   2500 7   2300 8   2650 9   2350 10   2600 a)   Compute manually (show your formulas) the...
Many proponents of environmental safety and public health are concerned about the creation, spread, and potential...
Many proponents of environmental safety and public health are concerned about the creation, spread, and potential impact of genetically modified foods. The United States, Canada, and Argentina are some of the leading producers of genetically modified foods made from bioengineered organisms (GMOs). The U.S. government believes that GMOs are important for the world’s food supply because they can boost food production and nutrition and lead to both disease-resistant crops and better-tasting foods. Many respected scientific studies vouch for the safety...
Explain why many economists argue that the free market benefits both sides of the market
Explain why many economists argue that the free market benefits both sides of the market
Why should public service organizations need to measure income?
Why should public service organizations need to measure income?
Many people argue about whether or not it is important to save animal diversity. Should human...
Many people argue about whether or not it is important to save animal diversity. Should human hardship be factored into the equation? Set up your own personal debate, and come up with several reasons why maintaining animal diversity is important and then some scenarios of when you think human survival/benefit might be more important.
We end with leadership, which many would argue should be at the start of any organization....
We end with leadership, which many would argue should be at the start of any organization. 1. Discuss the importance of leadership behaviors in effective strategy implementation. 2. What qualities and behaviors do you believe are most important in a leader relevant to strategy implementation. If applicable, include your personal experiences. Please number each response and provide one space between responses
Critics argue that public welfare should not be left up to private firms whose primary motive...
Critics argue that public welfare should not be left up to private firms whose primary motive is profit, yet there has been a move in government toward more privatization and contracting out for services. What are the advantages of doing so, and what are the pitfalls? Use local examples to illustrate each.
trash collection is typical service provided by most local government ,is it a pure public good?...
trash collection is typical service provided by most local government ,is it a pure public good? a is this service a pure public good? b should the city be engaged in trash collections activities? explain it
Case Study-2 International trade theories argue that nations should open their doors to trade Conventional free...
Case Study-2 International trade theories argue that nations should open their doors to trade Conventional free trade wisdom says that by trading with others, a country can offer its citizens a greater volume and selection of goods at cheaper prices than it could in the absence of it. Nevertheless, truly free trade still does not exist because national governments intervene. Despite the efforts of WTO (World Trade Organization) and smaller groups of nations, government seems to be crying foul in...
Case Study-2 International trade theories argue that nations should open their doors to trade Conventional free...
Case Study-2 International trade theories argue that nations should open their doors to trade Conventional free trade wisdom says that by trading with others, a country can offer its citizens a greater volume and selection of goods at cheaper prices than it could in the absence of it. Nevertheless, truly free trade still does not exist because national governments intervene. Despite the efforts of WTO (World Trade Organization) and smaller groups of nations, government seems to be crying foul in...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT