1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vlad [161]
3 years ago
11

"For each of the following scenarios, begin by assuming that all demand factors are set to their original values and that Big Wi

nner is charging $300 per room per night. If average household income increases by 50%, from $40,000 to $60,000 per year, the quantity of rooms demanded at the Big Winner from rooms per night to rooms per night. Therefore, the income elasticity of demand is , meaning that hotel rooms at the Big Winner are . If the price of a room at the Lucky were to decrease by 20%, from $200 to $160, while all other demand factors remain at their initial values, the quantity of rooms demanded at the Big Winner from rooms per night to rooms per night. Because the cross elasticity of demand is , hotel rooms at the Big Winner and hotel rooms at the Lucky are . Big Winner is debating decreasing the price of its rooms to $275 per night. Under the initial demand conditions, you can see that this would cause its total revenue to . Decreasing the price will always have this effect on revenue when Big Winner is operating on the portion of its demand curve."
Business
1 answer:
AleksandrR [38]3 years ago
6 0

Answer:

Check the explanation

Explanation:

Whenever there’s a $300 charge from the Big Winner, and normal household income is expected to be around $50,000, it can fill 200 rooms per night at that price. Though, if there’s an increase in a typical household income to $55,000, the quantity of rooms that would be demanded will rises to 300 rooms per night. You can calculate the income elasticity of demand for Big Winner's hotel rooms by dividing the percentage change in quantity demanded by the percentage change in income:

Income Elasticity of Demand Income Elasticity of Demand =

= Percentage Change in Quantity Demanded,

Percentage Change in Income

Percentage Change in Quantity Demanded

Percentage Change in Income

=250 = 50%10% 50%10% = 5 5

You might be interested in
Operating assets include cash, accounts receivable, and inventory but not any depreciable fixed assets.
IgorLugansk [536]
That statement is false.

WHAT ARE "OPERATING ASSETS"?
Operating assets are assets acquired for use of the ongoing operations of a business. 

OPERATING ASSETS INCLUDE:
Inventory, accounts receivable, & fixed assets.

WHY IS IT FALSE?
This statement would've been correct up until this point: "but not any depreciable fixed assets."
8 0
3 years ago
) In April of 2019, Mike acquired a machine for $30,000 to use in his business. It is the only plant asset he purchased this yea
yan [13]

Answer:

Option $6,000

Explanation:

Data provided in the question:

Cost of the machine acquired = $30,000

Classified useful life = 5 years property

Now,

The MARCS rate for 5 years property, the depreciation rate is 20%

Therefore,

The depreciation for the year 2019 will  be

= 20% of the Cost of the machine acquired

= 0.20 × $30,000

= $6,000

Hence,

Option $6,000

7 0
3 years ago
Skor Co. leased equipment to Douglas Corp. on January 2, 2011 for a 7-year period expiring December 31, 2017. Equal payments und
ExtremeBDS [4]

Answer:

$2,400,000

Explanation:

Always remember that in the case of a sales type lease, the lessor at the inception of the sales type lease would recognize sale of equipment at a price of present value of the lease payments which is $2,800,000 and cost of goods sold will be recorded at cost of equipment which is $2,400,000.

Case 1: If the equipment was an inventory then the double entry would be as under:

Recording of Sales:

Dr Lease Asset $2,800,000

Cr           Sale of Inventory $2,800,000

Recording of inventory out:

Dr Cost of Goods Sold $2,400,000

Cr           Inventory Account $2,400,000

Case 2: If the equipment was fixed asset then the double entry would be as under:

Recording of Sales:

Dr Lease Asset $2,800,000

Cr       Sale of Fixed Asset $2,800,000

Recording of equipment handing over to customer:

Dr Cost of Goods Sold $2,400,000

Cr        Equipment Account $2,400,000

In both of the cases the cost of goods sold will be $2,400,000.

4 0
3 years ago
Anthony and Michelle Constantino just got married and received ​$29,000 in cash gifts for their wedding. How much will they have
bearhunter [10]

Answer:

Future value will be larger with smaller compounding period; $373.4 more would be earned with shorter compounding period.

Explanation:

Given:

Amount to be invested = 29,000÷2 = $14,500

Duration if amount invested = 25 years

Rate = 4% or 0.04 compounded annually

Value of investment at the end of 25 years = 14,500\times(1+0.04)^{25}

                                                                         = $38,654.63

Future value if compounded annually is $38,654.63

Future value if semi-compounded annually:

Duration = 25×2 = 50 periods

Rate = 0.04÷2 = 0.02

Value of investment at the end of = 14,500\times(1+0.02)^{50}

                                                                         = $39,028.03

Future value if semi-compounded annually is $39,028.03

As such, future value is larger if compounding period was 6 months.

They would have earned $373.40 more that is (39,028.03 - 38,654.63), with shorter period.

8 0
3 years ago
Pls whoever answer this ASAP, I'LLMARK YOU BRAINLIEST... PROMISE
Taya2010 [7]

Answer:

I AM SO CONFUSED

5 0
2 years ago
Other questions:
  • If a manager designs the shoe department in a manner that one of its private-label pairs of shoes, priced at $39.99, is position
    5·1 answer
  • Consider a hypothetical closed economy in which households spend $0.60 of each additional dollar they earn and save the remainin
    6·1 answer
  • Which of these contributes to a budget deficit?
    8·1 answer
  • Suppose that a Treasury coupon security is purchased on April 8 and that the last coupon payment was on February 15. Assume that
    10·1 answer
  • At the end of its first year, the trial balance of Blossom Company shows Equipment $21,500 and zero balances in Accumulated Depr
    6·1 answer
  • You find a way to lower your production costs. now your marginal cost of making a cookie is only 25 cents. at the market price o
    14·1 answer
  • Texas Inc. has 10,000 shares of 6%, $125 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock ou
    13·1 answer
  • What is the primary reason to issue stock?
    9·1 answer
  • Which of the following statements accurately describe the phases of a business cycle? Check all that apply.
    10·1 answer
  • On May 31, Money Corporation's Cash account showed a balance of $13,500 before the bank reconciliation was prepared. After exami
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!