Anyone good in Economics? Willing to help with a problem?

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Rx Senior
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It's in an excel spread sheet. Told a girl the other night I was good at Econ she was seeing if I could help with the answers. . problem is it's been years since I have been in Econ and I really can't figure it out. I know we have some econ majors in here. . . Shoot me a PM if you're willing to help !
 

Rx Senior
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One of the questions is -

A Transit system reported bus ridership fell from 5 million to 4.5 million in 2010. This occurred during the same period of a 3 percent fall in gasoline prices.

A) Calculate the cross price of elasticity
b.) Are these goods substitutes, complements, or neither
C) Gasoline prices are set to rise 1 percent in 2011. Given ridership ended in 2010 at 4.5 million, how many riders will there be at the end of 2011, ceteris paribus, after the rise in
 

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B)The goods are substitutes-If gas prices go up bus ridership goes up
C) Since Ridership went down .5 million with a 3 percent decrease--A 1 percent rise will equal (1/3 of the 500k decrease)---So the ridership is going to rise up 166,666.7 since the price goes up and they are subs. Since it was 4.5 million, it will then = 4,666,666.67.

Not sure about A because i don't remember exact formulas since the last econ i took was money and banking, took micro/macro 2 years ago so not up to date. 99.99% sure the answers i gave for B and C are correct tho
 

Rx God
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Seems too theoretical to me. I'd like to see how that pans out in the real world.

I don't think gas going down just 3% makes a bus rider into a car owner. There's so much more involved in car ownership that 3% on gas costs is like zilch. A car owner buys gas at $2.59 / gallon or $3.89/ gallon because he needs gas...might drive less at the higher price to compensate.

The bus rider can't afford a car...thus he rides the bus !

If bus passes went up 50-100% , then borderline bus people might justify having a car of their own. Gas prices don't stay steady.

You can't really project it like this in the real world, IMO.

Most bus people will remain bus people and the corollary statement.

Dumb query, realistically !
 

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A Transit system reported bus ridership fell from 5 million to 4.5 million in 2010. This occurred during the same period of a 3 percent fall in gasoline prices.


You need to know the cost change in bus ridership to calculate the CPE.

CPE = (% Change in Quantity Demanded)/(% Change in Price)

We can figure out the first half of it:

[QDemand(NEW) - QDemand(OLD)] / QDemand(OLD) = 500k/5million = .10. If there is no change in price, then your CPE = .10/1 = .10.

If that's true, JStack is right...they are substitutes.

If...

CPE > 0, the two goods are substitutes

CPE = 0, the two goods are independent (ie no relationship)

CPE < 0, the two goods are complements
 

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Jack and Jill went up the hill,
They each had a buck and a quarter.
Jack and Jill came down the hill,
Jill had $2.50.

Now there's an example of economics that correlates perfectly with reality!
 

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Seems too theoretical to me. I'd like to see how that pans out in the real world.

I don't think gas going down just 3% makes a bus rider into a car owner. There's so much more involved in car ownership that 3% on gas costs is like zilch. A car owner buys gas at $2.59 / gallon or $3.89/ gallon because he needs gas...might drive less at the higher price to compensate.

The bus rider can't afford a car...thus he rides the bus !

If bus passes went up 50-100% , then borderline bus people might justify having a car of their own. Gas prices don't stay steady.

You can't really project it like this in the real world, IMO.

Most bus people will remain bus people and the corollary statement.

Dumb query, realistically !

Im pretty sure this is like econ homework not so much an application of real world problems but Im not positive
 

Nonsequential
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Just to clarify the situation here:

Kruser tells a girl he is good at econ to maybe get in her pants at some point in time
she calls him on it, plus she needs some help
kruser doesn't know shit about econ, so
his best idea that occurs to him is to go to therx and ask for help
 

Rx Senior
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Ok, I got the last problem done.

Elasticity was 3.3333
The two are substitutes

ridership would increase by 3.3%. Figured by cross price of elasticity * .01 = 3.3%
Ridership=4.65 million


Next problem=

You are considering two cell phone providers. Provider 1 charges $120 per month for the service regardless of the number of phone calls made. Provider 2 charges $1/min for calls without any minumums. Your demand for minutes of calling is given by the equation Qd=150-50*P, where P is the price of a minute.

A.)With each provider what is the cost of an extra minute on the phone
B.) Refer to your answer in (1), how many minutes would you spend on the phone with each provider
c.)How much would you end up paying each provider every month
d.) How much consumer surplus would you obtain with each provider? (Note: you don't need to graph, but write your formula below.)
e.) Which provider would you choose and why
 

Rx Senior
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Just to clarify the situation here:

Kruser tells a girl he is good at econ to maybe get in her pants at some point in time
she calls him on it, plus she needs some help
kruser doesn't know shit about econ, so
his best idea that occurs to him is to go to therx and ask for help


LMAO Gamebreaker, you got it! She called my bluff man! Hhahahah


-There are some very smart guys on this website, sprinkled in with all the loser degenerates that live with mom.
 

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Just to clarify the situation here:

Kruser tells a girl he is good at econ to maybe get in her pants at some point in time
she calls him on it, plus she needs some help
kruser doesn't know shit about econ, so
his best idea that occurs to him is to go to therx and ask for help


+1
 

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