Token price increases from $1.25 to $2.50: Ridership now declines to 25 % equivalent to 10 M less riders.......Assume costs (accounting) increase to $ 55 M and economic costs increase to $ 65 M; Supply increases by + 10%;  * What is your revised "PED" & "PES"?; * What are your new profit & loss values based on evaluation of both accounting & economic costs ? Are you better or worse off ? * What could happen if your analysis was extended from one  (1) month to six (6) months ? * What could happen if your market's (audience) average income increases or decreases by + / - 15 % given the change in the token cost from $1.25 to $2.50 ? * Would your "PED" and "PES" and profit / loss values change as well ?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter4: Extent (how Much) Decisions
Section: Chapter Questions
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Token price increases from $1.25 to $2.50: Ridership now declines to 25 % equivalent to 10 M less riders.......Assume costs (accounting) increase to $ 55 M and economic costs increase to $ 65 M; Supply increases by + 10%; 

* What is your revised "PED" & "PES"?;

* What are your new profit & loss values based on evaluation of both accounting & economic costs ? Are you better or worse off ?

* What could happen if your analysis was extended from one  (1) month to six (6) months ?

* What could happen if your market's (audience) average income increases or decreases by + / - 15 % given the change in the token cost from $1.25 to $2.50 ?

* Would your "PED" and "PES" and profit / loss values change as well ?

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