You have the following information for your product: • the price elasticity of demand is -0.9. • the income elasticity of demand is 0.5. • the cross-price elasticity of demand between your good and a related good is 2.0. what can you determine about consumer demand for your product from this information? b) the price elasticity of demand for urban transit fares has been estimated to lie between -0.1 and -0.6. based on these results, what is the economic argument for raising transit fares? what political arguments might local governments and transit authorities encounter in opposition to these economic arguments?

Alpine west, inc., operates a downhill ski area near lake tahoe, california. an all-day, adult ticket can be purchased for $55. adult customers also can purchase a season pass that entitles the pass holder to ski any day during the season, which typically runs from december 1 through april 30. the season pass is nontransferable, and the $450 price is nonrefundable. alpine expects its season pass holders to use their passes equally throughout the season. the company’s fiscal year ends on december 31. on november 6, 2009, jake lawson purchased a season ticket. required: 1. when should alpine west recognize revenue from the sale of its season passes? 2. prepare the appropriate journal entries that alpine would record on november 6 and december 31. 3. what will be included in the 2009 income statement and 2009 balance sheet related to the sale of the season pass to jake lawson?