Answer:
Price Quantity demanded Quantity demanded
business travelers vacationers
$150 2,100 1,000
$200 2,000 800
$250 1,900 600
$300 1,800 400
using the midpoint method:
- price elasticity of demand for business travelers = {(1,900 - 1,800) / [(1,900 + 1,800) / 2]} / {(250 - 300) / [(250 + 300) / 2]} = (100 / 1,850) / (-50 / 275) = 0.054 / -0.182 = -0.3
- price elasticity of demand for vacationers = {(600 - 400) / [(600 + 400) / 2]} / {(250 - 300) / [(250 + 300) / 2]} = (200 / 500) / (-50 / 275) = 0.6 / -0.182 = -3.3
Therefore, the demand for airline tickets in this price range is elastic for vacationers because business travelers are sensitive to changes in price? <u>FALSE, the demand for airline tickets for vacationers is elastic because vacationers are very sensitive to the changes in price, while business travelers aren't.</u>
1. identify decision
2. gather information
3. identify alternatives
4. weigh the evidence
5. choose among alternatives
6. take action
7. review your decision
Answer:
Cash flows from financing activities = -$12600
Explanation:
Before we determine this company's cash flows from financing activities we should understand what components or cash flows are and/or can be associated with financing activities of a business. Cash flows from financing activities include all those cash flows that are received/paid in financing/funding the entity's operations. All those cash flows that are related to raising funds/finance for the business which normally include cash from issuance of equity/debt/, settlement of mature instruments etc.
So in the question the cash flows that relate to financing activities are as follows;
<em>issued common stock =$64000</em>
<em>paid cash dividend = $14600</em>
<em>settlement of note payable = $50000</em>
<em>payment to acquire treasury stock = $12000</em>
<em />
Cash flows from financing activities = $64000 -$14600 -$50000 -$12000
Cash flows from financing activities = -$12600
In this situation, the company is facing negative cash flows as company has received lower cash from financing and has paid/settled greater amounts.
<em>Note: purchasing of equipment is a cash outflow from investing activities and net income generated is a cash inflow from operating activities.</em>
Answer:
Perfect competition is a market situation by means of which no supplier can influence or determine the price of a good or service, as long as there is a multiplicity of suppliers who offer a homogeneous good, equivalent to that of the other suppliers. These goods, therefore, would not have differences between them (an example could be the fruit market), and therefore buyers could decide to buy from those sellers who offer the best prices. In this way, perfect competition would be generated between the bidders, who through their price would seek to attract buyers. For this type of competition (in theory, since in practice it is almost impossible) to occur, it requires a market without any type of barriers, with a product with the same characteristics, a high number of market players and abundant information about each of the products.
Answer:
-$94,300
Explanation:
Activities related to land, buildings or equipment do not qualify as financing activities and thus should not be considered. As for the remaining activities, their contributions to cash are listed as follows:
Purchase of treasury stock = -$41,100
Payment of cash dividend = -$94,300
Issuance of common stock = $148,900
Retirement of bonds = -$107,800
The cash flow due to financing activities is:
Net cash used by financing activities is -$94,300.
