The correct answer is that the price elasticity of demand is elastic.
Price elasticity occurs when a change in price results in a change in demand. In this example, a 20 percent increase in the price of the drinks resulted in a 25 percent decrease in the demand for the product. Because the price increase resulted in a demand decrease the price is elastic.
Sometimes ? But some jobs involve trusting your co workers
Answer:
An upscale "white-tablecloth" restaurant chain acquires a travel agency.
Explanation:
Few reasons:
- Such restaurant are luxurious, so they would want to collaborate with travel agencies but not acquire the whole agency itself.
- Being the upscale restaurant they have to work on their own image not acquiring unnecessary agencies.
- They have their own customer market, who won't compromise on the choices they make, so they don't need to acquire a travel agency to increase it's branding as not everyone can afford such restaurants.
Answer:
Fresh cola is using packaging as a part of its product differentiation strategy
Explanation:
A product differentiation strategy may require adding new functional features or might be as simple as redesigning packaging. Therefore Fresh cola is using packaging as a part of its product differentiation strategy since it changed its previous features to a new one
Explanation:
a. The journal entries are as follows
On June 15
Retained earning A/c Dr $60,000
To Dividend payable $60,000
(Being cash dividend declared)
On June 30
No journal entry is required
On June 10
Dividend payable $60,000
To Cash $60,000
(Being the dividend is paid)
On Dec 15
Retained earning A/c Dr $64,000
To Dividend payable $64,000
(Being cash dividend declared)
On Dec 31
No journal entry is required
b. Now the dividend is reported on the retained earning statements in a negative sign whereas the dividend payable is reported on the current liabilities of the balance sheet
