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?

James has set the goal of achieving all "a"s during this year of school. which term best describes this goal

Amanda works as an industrial designer

Profits from using currency options and futures. on july 2, the two-month futures rate of the mexican peso contained a 2 percent discount (unannualized). there was a call option on pesos with an exercise price that was equal to the spot rate. there was also a put option on pesos with an exercise price equal to the spot rate. the premium on each of these options was 3 percent of the spot rate at that time. on september 2, the option expired. go to the oanda. com website (or any site that has foreign exchange rate quotations) and determine the direct quote of the mexican peso. you exercised the option on this date if it was feasible to do so. a. what was your net profit per unit if you had purchased the call option? b. what was your net profit per unit if you had purchased the put option? c. what was your net profit per unit if you had purchased a futures contract on july 2 that had a settlement date of september 2? d. what was your net profit per unit if you sold a futures contract on july 2 that had a settlement date of september 2