Answer:
D. a 10 percent decrease in the average price of a lift ticket.
Explanation:
When Price elasticity is greater than 1, that suggests that the demand for that particular good or service is highly responsive to price or is price-sensitive . Furthermore, If price elasticity is greater than 1 then an increase in price will cause revenue to decrease.
Applying the above-stated principle to the given scenario, it has been stated that 'The estimated price elasticity of demand is 1.5.' implying that the demand for downhill ski is highly sensitive and responsive to changes in price.
Therefore, the only logical economic strategy to improve revenues will be to decrease price so that revenue can increase.
Answer:
The correct solution is "6.09%".
Explanation:
Given:
Nominal rate,
= 6%
or,
= 0.06
As we know,
⇒ ![EAR = [(1+\frac{APR}{m} )^m]-1](https://tex.z-dn.net/?f=EAR%20%3D%20%5B%281%2B%5Cfrac%7BAPR%7D%7Bm%7D%20%29%5Em%5D-1)
By substituting the values, we get
![=[(1+\frac{0.06}{2} )^2]-1](https://tex.z-dn.net/?f=%3D%5B%281%2B%5Cfrac%7B0.06%7D%7B2%7D%20%29%5E2%5D-1)
![=[(1+0.03 )^2]-1](https://tex.z-dn.net/?f=%3D%5B%281%2B0.03%20%29%5E2%5D-1)
(%)
Answto be honest I really don’t know er:
Explanation:
Answer:
It will reduce the amount of dividiends it can pay.
Explanation:
As there is an amount of the retained earnings that is restricted the company cannot use them to pay up neither stock or cash dividends in the future.
The retained earnings are used to pay dividends but also, are part of the equity of the firm thus the RE count to the capital structure of the company . Loans can be obtained with better rates if thecapital structure is more based on equiy than in liabilities thus, the board of directors is planning ahead the future plant exansion avoiding to use cash and deteriorate his capital structure to pay up dividends.
