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NeTakaya
3 years ago
8

The latest data from the movie studios reveals that attendance at movies has declined as well as the average ticket price. How c

ould this have possibly happened? 1. There was an increase in demand and no change in supply. 2. There was a decrease in demand and an increase in supply. 3. There was no change in demand and an increase in supply. 4. There was a decrease in demand and no change in supply. 5. There was no change in demand and a decrease in supply.
Business
2 answers:
Alex777 [14]3 years ago
6 0

Answer:

(2) There was a decrease in demand and an increase in supply

Explanation:

For a movie studio, a decline in attendance suggests that demand for showtime (movies) had declined. If demand had increased, there would have been an increase in attendance at the movies. If demand had remained the same, attendance would have remained unchanged too with no increase or decrease.

However, the decline in the average ticket price suggests that supply of movies had most likely increased (it could also be the case that studios decrease prices in a bid to attract customers in the face of dwindling demand). An increase in average ticket price would have suggested that lower movies were available or demand was higher than supply.

Zanzabum3 years ago
4 0

Answer:

2. There was a decrease in demand and an increase in supply.

Explanation:

If the latest data from the movie studios reveals that attendance at movies has declined as well as the average ticket price, then this could possibly have happened as a result of 2 things:

1. A DECREASE IN DEMAND: This is very obvious because it is stated clearly that 'attendance at movies have declined'' that means people no longer go to movies as they used, at least some people may not even be going anymore.

2. INCREASE IN SUPPLY: The second reason might be less obvious but it can be recalled that one of the major reasons in economics that triggers a price drop is 'increase in supply'. In the scenario, the fact that average ticket price across board have declined points more in the direction of increase in supply.

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A "Name That Tune" contest has a grand prize of $500,000. However, the contest stipulates that the winner will receive just $200
Alexxx [7]

Answer:

The correct answer is (C) $401,302

Explanation:

To get how much the contest winner actually won, we have to calculate the amount receive at the end of each year discounted at this moment. Then,  we added  all the payments.  

For example, the first payment in  $200,000 at this moment,  so we add  $200,000.  

At the end of the first year we receive $30,000, and the rate of discount is 8%

The formula of discount is P=A/ (1+r)ⁿ

A=Final amount  

P= Principal

r= interest rate

n= time

Year 1 = A/ (1+r)ⁿ =$30,000/1,08¹= 27777,77

Year 2 =$30,000/1,08²= 25720,16

Year 3=23814,96

Year 4=22050,89

Year 5=20417,49

Year 6=18905,08

Year 7=17504,71

Year 8=16208,06

Year 9=15007,46

Year 10=13895,80

 

Total  401302,44

3 0
3 years ago
The managers of Danestump, a hardware manufacturing company, are expected to follow standing plans before approving long leaves
Hitman42 [59]

Answer: Procedures

Explanation:

From the given case/scenario, we can state that the standing plan can be referred to as <em>procedures</em>.  A procedure is referred to as a document or act that is written in order to support a policy. It is mostly designed in order to describe where,who, what, when, and why through means of building corporate accountability in inclination to implementation of the policy.

8 0
3 years ago
Nunavet Ocean Cruises sold an issue of 12-year ​$1,000 par bonds to build new ships. The bonds pay​ 4.85% interest, semi-annuall
frez [133]

Answer:

bond market value $660

Explanation:

We need to calculate the present value of the maturity and the cuopon payment using the effective rate of 9.7%

First we do the annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  24.25  (1,000 face value x 4.85 bond rate / 2 )

time  24.00 (12 year 2 payment a year)

rate  0.04850 (current rate divide by 2 to get it annually)

24.25 \times \frac{1-(1+0.0485)^{-24} }{0.0485} = PV\\

PV $339.55

Then present value of the maturity

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00 the face value of the bond

time   24.00

rate   0.04850

\frac{1000}{(1 + 0.0485)^{24} } = PV  

PV   320.89

Finally we add them together:

PV coupon payment $339.5545

PV maturity  $320.8910

Total $660.4455

rounding to nearest dollar

bond market value $660

7 0
3 years ago
Using+a+50/50+debt/equity+mix,+a+1%+reduction+in+which+cost+of+capital+category+would+drive+a+larger+reduction+in+wacc?
Fantom [35]

A larger reduction in wacc equals impact from equity and debt. The NPV method assumes that cash flows will be reinvested at the WACC, while the IRR method assumes reinvestment at the IRR

WACC SG&A Sales CAGR EPS To make projections while capital budgeting in Excel, you have to make assumptions Although conservative assumptions are safe, they are generally so safe you would not want to make the investment.

It is best for organizations to keep their debt-to-equity ratio at a manageable level, which is generally indicated by a ratio that is below Sustaining a very low ratio would show companies that they may not be taking advantage of the cash they have for investment opportunities the project will break even.

Learn more about Equity here:-brainly.com/question/12781629

#SPJ4

4 0
2 years ago
Consider a small country that is closed to trade, so its net exports are equal to zero. The following equations describe the eco
viva [34]

Answer:

Y = 300

government multiplier 2

output demanded increase by 20

If income tax is applied:

Y = 272.72

multipliers: 2.253775

increase 22.53775 billons

As disclosure it has a larget effect when the income tax is levied based on income rather than a flat rate.

Explanation:

DI = Y - 100

C = 30 + 0.6(Y - 100)

C = 30 - 60 + 0.6Y

C = 0.6Y - 30

Y = C + G + I

Y = (0.6Y -30) + 120 + 30

Y = 120 / 0.4 = 300

C = (0.6)300 - 30 = 150

With C we solve for the multiplier:

150/300 = 0.5

1 / (1 - 0.5) = 2

10 x 2 = 20

If variable that:

C = 30 + 0.6 (0.75Y)

C = 30 + 0.45Y

Y = 0.45Y + 120 + 30

Y = 150/.55 = 272,72

C = 30 + 0.45Y = 152,72

Propensitivity to consume:

152.72/272.72 = 0,5563

multiplier:

1 (1 - PMC) = 2.253775073

10 nillon will icnrease x 2.25377 = 22.54 billons

8 0
3 years ago
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