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olganol [36]
3 years ago
15

The local symphony recently raised its price for tickets to their summer concerts in the park. At the end of the summer season,

the symphony was surprised to see that total revenue had actually decreased. The reason was that the elasticity of demand for tickets was
Business
1 answer:
denpristay [2]3 years ago
7 0

Answer:

Elastic which is more than 1.

Explanation:

Price elasticity of demand is the responsive relationship of quantity demanded when compared to price. It measures how much change there would be in demand if Price were to change.

The raise in prices yielded a fall in revenue because the demand for tickets was elastic. (More than 1)

An elastic demand means that a small change in price will cause a more than proportionate change in qty demanded and hence with an increase in price, far less people purchased the ticket.

An inelastic demand however would have caused less people to give up tickets and raised overall revenues.

Hope that helps.

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A number of years ago, Lee acquired a 20% interest in the BlueSky Partnership for $60,000. The partnership was profitable throug
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Answer:

Please see attachment

Explanation:

Please see attachment

7 0
3 years ago
Suppose the Federal Reserve releases a policy statement today which leads people to believe that the Fed will be enacting expans
bekas [8.4K]

Answer:

<h2>An expansionary monetary policy by the Federal Reserve would lead to an <u>increase </u> in the demand for US assets and a <u>depreciation</u> in the value of US dollars.Hence the correct answer is option D) or increase;depreciate.</h2>

Explanation:

An expansionary monetary policy commonly entails expansion of money supply thereby reducing the eventual interest rate in order to boost or stabilize the Aggregate Demand(AD) and overall output level or GDP in the economy.Now,as the domestic interest would fall in US due to the expansionary speculations and inflationary indications(increase in money supply),it would consequently lower the value of the US dollars relative to other foreign currencies.This implies that US dollar would depreciate compared to other foreign currencies.This possibility would encourage the importers and international investor or financiers to become more attracted towards the US goods,services and financial assets thereby increasing their demands.Therefore,a depreciation of US dollars would essentially lead to an increase in the demand for US assets in the international market as depreciation of US dollars would also lower the value of US assets in the international market.

3 0
3 years ago
Simon decided to invest $8,000 in the stock market one day early in 2008. Six months after he invested, on July 17, the stocks h
Dmitriy789 [7]

Answer:

At this point, Simon has lost $1,000 of his money.

Explanation:

This can be determined by calculating the current value of Simon's investment as follows:

Initial amount invested = $8,000

Value of the investment on July 17 = Initial amount invested * (100% - Percentage of loss) = $8,000 * (100% - 50%) = $4,000

Value of the investment on October 17 = Value of the investment on July 17 * (100% + Percentage of increase) = $4,000 * (100% + 75%) = $7,000

Amount of loss on October 17 = Initial amount invested - Value of the investment on October 17 = $8,000 - $7,000 = $1,000

Therefore, at this point, Simon has lost $1,000 of his money.

3 0
3 years ago
Samuel, a longtime employee of the ABCD Corporation, was injured when he fell off a ladder while stocking widgets at ABDC at the
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Answer:

Option B. He will win

Explanation:

If Samuel is desiring to sue his employer in a circuit court because he thinks that the employer was negligent then he will have to sue under negligence Act, which says that the employer is obliged to take all necessary precautions and if found negligent then the court may apply contributory negligent theory as well as comparative negligent theory. These two negligent theories means that the employer was partly responsible for injury, which means that this would result in compensation to Samuel.

Hence it is more likely that Samuel will win the case.

7 0
3 years ago
Jacques lives in Miami and runs a business that sells boats. In an average year, he receives $793,000 from selling boats. Of thi
KatRina [158]

<u>Explanation</u>:

Remember, Implicit cost refers to cost that do not involve monetary transactions by Jacques, while his Explicit cost includes all forms of direct payments made by Jacques to others while selling his boat.

<u>Therefore, the cost are assigned below:</u>

  1. The $50,000 salary Jacques could earn if he worked as a financial advisor= Implicit Cost
  2. The $15,000 rental income per year Jacques would receive if he chose to rent out his showroom= Implicit
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4 0
4 years ago
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