Answer:
B) Increases profits by $700.
Explanation:
We must perform an incremental analysis of the costs and revenues generated by the alternative course of action which is offering the package:
Current income:
ballroom rent $4,500
<u>extras $800</u>
total current income = $5,300
Alternative action income:
wedding package $6,000
opportunity cost ballroom rent $4,500
<u>opportunity cost extras $800 </u>
net income increase = $700
Answer:
D
Explanation:
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
If good X is a normal good and the consumers income increases, the demand for good X would increase
It would have been that the Law of demand not supply that didn''t hold
according to the law of supply, the higher the price, the higher the quantity supplied and the lower the price, the lower the quantity supplied.
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
Answer:
The correct answer is letter "B": the purchase of new capital.
Explanation:
In macroeconomics, an investment is a capital that has been acquired with the intention that it will produce income or interest over time. Popular investments include <em>stocks, bonds, real estate, mutual funds </em>and<em>, </em>to a lesser degree<em>, commodities, annuities, and options.
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Many investments trade on the open market every day. Global events and company results will cause the price of the investment to rise or fall.
Answer:
B. $300
Explanation:
The interest revenue is computed below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $20,000 × 6% × (3 months ÷ 12 months)
= $300
The 6 months is calculated from October 1 to December 31
Simply we use the simple interest formula by considering the principal amount, rate of interest and time period so that the correct revenue can be computed
