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Deffense [45]
4 years ago
6

Recently, Verizon Wireless ran a pricing trial in order to estimate the elasticity of demand for its services. The manager selec

ted three states that were representative of its entire service area and increased prices by 5 percent to customers in those areas. One week later, the number of customers enrolled in Verizon’s cellular plans declined 4 percent in those states, while enrollments in states where prices were not increased remained flat. The manager used this information to estimate the own-price elasticity of demand and, based on her findings, immediately increased prices in all market areas by 5 percent in an attempt to boost the company’s 2016 annual revenues. One year later, the manager was perplexed because Verizon's 2016 annual revenues were 10 percent lower than those in 2015—the price increase apparently led to a reduction in the company’s revenues. Did the manager make an error
Business
1 answer:
Anettt [7]4 years ago
8 0

Answer:Yes, the Manager made an error.

Explanation:

Increasing the revenue of a firm depends on two factors which are price and effective demand. An increase in price without a fall in demand will increase revenue, an increase in demand without a fall in price will equally increase revenue.

However when manipulating price only in order to increase revenue care must be taken to ensure same or higher level of demand for an increase in price which lead to a fall in demand may boomerang for the firm.

E.g

Year. $ Price. Demand. Revenue$

1. 5. 100. 500

2. 6. 80. 480

The above illustrate an increase in price without a rise or maintaining the same level of demand leads fall in revenue.

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The lender charges you $9 per week for each $100 you borrow.
mixer [17]

Answer:

i believe 2,107.5711%

Explanation:

8 0
3 years ago
Given the following information about Elkridge Sporting Goods, Inc., construct a balance sheet for June 30, 2013. On that date t
OLga [1]

Answer:

<em>Retained Earnings = 109,909</em>

Explanation:

\left[\begin{array}{cccc}cash&25,135&AP&67,855\\AR&43,758&NP&36,454\\inventory&172,500&Long-term&222,300\\fixed \:assets&332,300&Common\: Stock&150,000\\other \: assets&13,125&RE&110,209\\Total Assets&586,818&Total L+E&586,818\\\end{array}\right]

<u>First </u>

We add all the assets together. 586,818

<u>Then</u>

we add the lliabilities and common stock. 476,909

<u>Finally</u>

We use the accounting equation to solve for RE

Assets = Liab + Equity

586,818 = sum of liab and equity accounts

we know that all the accounts, except RE add to 476,909

586,818 = 476,909 + RE

586,818 - 476,909 = RE

RE = 109,909

5 0
3 years ago
margot company purchases $100,000 face amount, 6% semi-annual bonds for $110,000 when the market interest rate is 5%. margot sho
kolbaska11 [484]

Margot company purchases $100,000 face amount, 6% semi-annual bonds for $110,000 when the market interest rate is 5%. margot should recognize the following interest revenue for the first 6-month period:

$3,000

Rationale:

$100,000 x (6% x 6/12)

The amount that the lender charges the borrower over and beyond the principal amount is referred to as the interest rate. A person who deposits money in a bank or other financial institution also earns additional income in terms of the recipient, known as interest, taking into account the time value of money.

The amount that a lender charges a borrower for the use of assets on top of the principal is known as the interest rate.

The money generated from a deposit account at a bank or credit union is likewise subject to an interest rate.

Simple interest is used in most mortgages. Compound interest, which is applied to both the principle and the accrued interest from earlier periods, is used in some loans, nevertheless.

The interest rate will be lower for a borrower who the lender deems to be low risk. The interest rate on a loan will be greater if it is thought to be high risk.

Learn more about interest rates here:

brainly.com/question/13324776

#SPJ4

8 0
2 years ago
During the current year, the company had the following summarized activities: Purchased short-term investments for $10,000 cash.
aivan3 [116]

Answer:

short-term investment 10,000 debit

                     cash                10,000 credit

note receivables           5,000 debit

                cash                         5,000 credit

equipment                  18,000 debit

        cash                          5,000 credit

         note payable           13,000 credit

cash              11,000 debit

     common stock          1,000 credit

     additional CS          10,000 credit

cash               9,000 debit

    note payable             9,000 credit

Patents      3,000 credit

          cash                   3,000 debit

Building    24,000 debit

      cash               8,000 credit

     note payable 16,000 credit

cash         1,000 debit

  equipment          1,000 credit

Explanation:

To record the entries we need to alwasy make debit = credit

we must use account names to represent each concept which are quite easy you don't have to overthink ou write what it is telling you it happen

Whe nthe company use cash use cash account

when it purchase equipment use equiptment

7 0
4 years ago
Coffee Klatch is a chain of small coffee shops that are located in college towns and mostly employ students. The company offers
NNADVOKAT [17]

Answer:

High Morale.

Explanation:

Morale is internal feeling and it is inspired by the environment. It depends upon the relations between expectations and reality.

A motivated person tends to experience high morale A person in High morale group need not be Motivated.

Make sure that employees are interested in and appreciated for their work. High morale yields higher productivity in an organization Employees’ spirits can easily fall if their day-to-day responsibilities are monotonous or if they don’t feel valued by their supervisors. Over time, this can translate into an unmotivated and unproductive staff.

Employees evaluate their treatment relative to the treatment of others, they need to fell contributions to their jobs. What employees receive in return is the perceived ratio of contribution to return determines, and equity.

How to Boost Morale?

-Motivate employee with your examples

-Establish clear and good communication with employees

-Enrich employees’ jobs

-Challenge employees to perform better Involve employees as equal members of your team

-Consult your employees

-Empower your employees

-Acknowledge and appreciate employees

-Show care to your employees

-Create healthy work environment

-Do some personal things

5 0
4 years ago
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