You Have Been Hired by the City to Determine Whether

question 140

Essay

You have been hired by the city to determine whether or not an increase in the price of tickets for the mass transit system would raise system revenues. The debate has been heated and the city council seems to be divided. One side argues that in order to increase revenues from the transit system, prices must be increased. The opposing side argues that a price increase at this time will lower revenues. What assumptions are each side making about the price elasticity of demand, and how might you determine the best course of action?

Assess the role of situational vs. dispositional attributions in explaining behavior.

Explore the concept of defensive attributions and their use in rationalizing events or actions.

Examine the impact of group affiliation on perception and attribution of ingroup and outgroup members.

Understand the implications of attribution theories for personal behavior and interpersonal relations.

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Definitions:

Accounting Equation

Assets = Liabilities + Owner’s Equity.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, usually a fiscal quarter or year, to calculate net income.

Adjusting Entry

A journal entry made in accounting records at the end of an accounting period to allocate income and expenditure to the correct period.

Net Income

The net earnings of a company, calculated by deducting all operating costs and taxes from the total income.