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Bezzdna [24]
3 years ago
12

Suppose pizzas and burgers are substitutes. If the price of pizza increases, what happens in each market?

Business
1 answer:
dybincka [34]3 years ago
4 0

Answer:

The correct answer is option a.

Explanation:

Pizzas and burgers are substitutes. This implies that they are used in place of each other. If the price of pizza increases, its quantity demanded will decrease. This will be indicated by an upward movement to the left on the same demand curve.

The consumers will prefer a cheaper substitute, as a result, the demand for burgers will increase. This will be indicated by a rightward shift in the demand curve for burgers.

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The menu in a franchise restaurant differs from that of an independently owned restaurant in which of the following ways
djverab [1.8K]
<span>The menu in a franchise restaurant differs from that of an independently owned restaurant in which of the following ways? A menu in a franchise restaurant is normally the same in all of the franchise establishments. When a restaurant is independently owned their menu can be as diverse as they want, it can change all of the time without corporate approval and can serve what's in season much easier. Though franchise menu's may differ based on region, all within a set area are typically the same. </span>
7 0
3 years ago
An asset used in a 4-year project falls in the 5-year MACRS class for tax purposes. The asset has an acquisition cost of $9,100,
sveticcg [70]

Answer:

$2,343,120

Explanation:

The computation of the after tax salvage value of the asset is shown below:

Written down cost of asset after 4 years = Acquisition cost of an asset - 4 years  depreciation

= $9,100,000 × (100 - 20 - 32 -19.20 - 11.52)%

= $1,572,480

Refer to the MACRS table

Now

Selling price = $2,600,000

Gain on Sale is

= $2,600,000 - 1,572,480

= $1,027,520

So,

Tax on Gain is

= $1,027,520 × 25%

= $256,880

So,

After tax salvage value = Sales Price - gain on tax

= $2,600,000 - $256,880

= $2,343,120

8 0
3 years ago
Shares of common stock of the Samson Co. offer an expected total return of 13.00 percent. The dividend is increasing at a consta
Kazeer [188]

Answer:

7.6%

Explanation:

The formula for calculating the Required return is:

Required return = Dividend yield + Capital Gain Yield

Hence,

13% = Dividend Yield + 5.40%

Dividend Yield = 7.60%.

Hope this helps.

Goodluck.

3 0
3 years ago
Last year Lowell Inc. had a total assets turnover of 1.40 and an equity multiplier of 1.75. Its sales were $295,000 and its net
katrin [286]

Answer:

ROE would have changed by 8.52%

Explanation:

First we calculate the current ROE using Dupont Equation which gives ROE as,

ROE = Net Income/Sales * Sales/Total Assets * Total Assets/Equity

or

ROE = Net Profit Margin * Total Assets Turnover * Equity Multiplier

  • Current ROE = 10600/295000 * 1.4 * 1.75 = 0.0880 or 8.8%

The condition says that the net income could have increased to 20850 but other factors will remain constant. Thus, to calculate new ROE, we will calculate the new Net Profit margin but the total assets turnover and the equity multiplier will remain constant as sales assets and capital structure is not changing.

  • New ROE = 20850/295000 * 1.4 * 1.75 = 0.17316 or 17.32%
  • The ROE would have changed by 17.32 - 8.80 = 8.52%
7 0
3 years ago
You manage marketing for a small business on a tight budget, yet you need to reach as many people as possible. How can Google Ad
Crazy boy [7]

Answer:

While google ads may be expensive, it spreads the word around quicker because 98% use google. seeing an ad might interesting them into to the buisness.

Explanation:

8 0
3 years ago
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