1. The New York Times reported (Feb. 17, 1996) that subway ridership declined after a fare increase: "Compared to December 1994, there were nearly four million fewer riders--a decline of 12%-in December
1995, the first full month after the price of a token increased by 15%" Suppose for the sake of argument
that the reduction in the number of riders was caused solely by the price hike.
a) Use the info given to calculate the price elasticity of demand for subway rides. Show your calculation! Is
the demand elastic or inelastic? Explain.
b) According to your estimate, what happens to the Transit Authority's total revenue (TR) when the fare
rises? (That is, did total revenue increase or decrease as a result of the price hike?) Explain. If the Transit
Authority's goal is to maximize total revenue, was hiking the token price a good idea?

Synovec co. is growing quickly. dividends are expected to grow at a rate of 24 percent for the next three years, with the growth rate falling off to a constant 7 percent thereafter. if the required return is 11 percent, and the company just paid a dividend of $2.05, what is the current share price? (do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Elliott company produces large quantities of a standardized product. the following information is available for its production activities for march. units costs beginning work in process inventory 2,500 beginning work in process inventory started 25,000 direct materials $ 3,725 ending work in process inventory 5,000 conversion 11,580 $ 15,305 status of ending work in process inventory direct materials added 185,750 materials—percent complete 100 % direct labor added 182,375 conversion—percent complete 30 % overhead applied (140% of direct labor) 255,325 total costs to account for $ 638,755 ending work in process inventory $ 62,530 prepare a process cost summary report for this company, showing costs charged to production, unit cost information, equivalent units of production, cost per eup, and its cost assignment and reconciliation. use the weighted-average method. (round "cost per eup" to 2 decimal places.)

Based on the supply and demand theory, why do medical doctors earn higher wages than child-care workers?