Question
I need help with price elasticity! I have the document needed. it's based off the case Union Pearson Express: A Train Wreck in Slow Motion.
I need help with price elasticity! I have the document needed. it's based off the case "Union Pearson Express: A Train Wreck in Slow Motion." It's an excel document I'm working on.
1.Evaluate $10, $15, and $20 as alternative base prices to the current $27.50 base price. What are the break-even ridership levels at each price? Use the case information to calculate price elasticity (you will likely get different elasticities because an elasticity curve is not linear). Choose and justify an elasticity factor and calculate expected ridership at each level. What are the revenue projections at each of the four pricing levels? (You should attach a spreadsheet with your calculations. In your submission, refer to that spreadsheet in your answer.)
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