The Acmeville Metropolitan Bus Service currently charges $0.88 for an all-day ticket, and has an average of 623 riders a day. The bus company is not earning a profit, but according to their contract with the city, they cannot cut the number of buses on the road. They must therefore find a way to increase revenues. The bus company is considering increasing the ticket price to $1.11. The marketing department's studies indicate this price increase would reduce usage to 346 riders per day. Calculate the absolute value of the price elasticity of demand for bus tickets using the simple percentage change method. Round your answer to one decimal place.

The price elasticity of demand for air travel differs radically from first-class (-1.3) t to restricted discount coach (-1.8). Given these elasticities, what will be the difference between the optimal prices (fares) of first class and discount coach on a cross-country trip with incremental variable costs (marginal costs) equal to $120?

Amy is a graduate student living in Dallas who works as a caddy to supplement their normal income. At an hourly wage rate of $15, they are willing to caddy 5 hours per week. Upping the wage to $25 per hour, they are willing to caddy 14 hours per week. Using the midpoint method, the elasticity of Amy’s labor supply between the wages of $15 and $25 per hour is approximately  (0.06, 0.53, 1.89, 10.56) , which means that Amy’s supply of labor over this wage range is  (elastic/inelastic)  .

The Potomac Range Corporation manufactures a line of microwave ovens costing $500 each. Its sales have averaged about 6,000 units per month during the past year. In August, Potomac's closest competitor, Spring City Stove Works, cut its price for a closely competitive model from $600 to $545. Potomac noticed that its sales volume declined to 4,500 units per month after Spring City announced its price cut.   a) What is the arc cross elasticity of demand between Potomac's oven and the competitive Spring City model?   b) If Potomac knows that the arc price elasticity of demand for its ovens is −2.0, what price would Potomac have to charge to sell the same number of units it did before the Spring City price cut?