1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
sweet [91]
3 years ago
9

You are the manager of a movie theater that is the only one in a local market, so you have strong market power. You have extensi

vely researched your customer base and realize you have two types of segmentable customers: (i) students who have an elasticity of demand for movies of -2.7 and (ii) senior citizens who have an elasticity of demand for movies of -5.1. Which of the following pricing schemes would you employ to enhance profits?a. Set higher prices to the students as their demand is relatively more elastic.b. Set higher prices to the students as their demand is relatively more inelastic.c. Set higher prices to the senior citizens as their demand is relatively more elastic.d. Set higher prices to the senior citizens as their demand is relatively more inelastic.
Business
1 answer:
Gre4nikov [31]3 years ago
7 0

Answer: b. Set higher prices to the students as their demand is relatively more inelastic.

Explanation:

Price elasticity of demand measures the change in quantity demanded to changes in price levels.

If demand is inelastic, a small change in price has a small effect on quantity demanded. An inelastic demand usually has a coefficient of less than 1.

The elasticity of demand for students and senior citizens are both inelastic but that of the students is greater than that of senior citizens. They are less responsive to price changes when compared with senior citizens.

You might be interested in
It's very urgent
3241004551 [841]

Answer: While not usual they can be held responsible for all business debts.

Explanation: If you pledge a asset as a collateral a creditor may be able to take said asset and sell it.

3 0
3 years ago
Total variable costs A. always increase with output. B. initially decrease and then increase with output. C. initially increase
galina1969 [7]

Answer:

A. always increase with output.

Explanation:

There are basically 2 groups of cost namely; Fixed and variable cost.

The fixed cost are usually like sunk cost that will be incurred irrespective of how many units are produced.

Total variable costs refers to all elements of cost that vary proportionately with the level of activities or output. A good example is the direct material cost.

It is the total of the marginal cost over the units produced. The right answer is A. always increase with output.

6 0
4 years ago
Patsy’s home has been on the market for five weeks, and two brokers had buyers who were ready to make offers. If Patsy accepted
castortr0y [4]

Answer: open listing

Explanation:

Open listing simply refers to situation whereby a property owner uses several real estate agents when he or she wants to sell a property so that there will be many potential buyers.

In this situation, the agent who eventually brings the person who purchases the property will collects the commission assigned to the property.

8 0
3 years ago
An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider; (16-2
jekas [21]

An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider a venture capital .

Option D

<u>Explanation: </u>

Venture capital (VC) is a method of funding that is made available to micro, early-stage and developing businesses by corporations or funds with a high potential for success or development (within employee numbers, annual income, or both).

Example:

Pepperfry, India's biggest furniture e-market brought up USD 100 million in a New session funding led by Goldman Sachs and Zodius Technology Fund. Pepper fry is expanding its emissions by adding to its increasing fleet of supply automobiles in Level III and Level IV cities.

This will also open up new distribution centres and extend its network of carpenters and assemblies. This is a business based e-commerce player's first quantum expenditure in India.

5 0
3 years ago
Mauve starts a business that specializes in procuring and selling antique items. Her business caters specifically to individuals
stepan [7]

Answer:

The opportunity of exploiting market niches is highlighted in the given scenario.

Explanation:

A market niche is "a small but profitable segment of a market suitable for focused attention by a marketer. Market niches do not exist by themselves, but are created by identifying needs or wants that are not being addressed by competitors, and by offering products that satisfy them. See also market segmentation. "

Reference: WebFinance Inc. “What Is Market Niche? Definition and Meaning.” BusinessDictionary.com, 2019

6 0
3 years ago
Other questions:
  • Which type of franchising involves a franchisor licensing a franchisee to sell specific products under the​ franchisor's brand n
    13·1 answer
  • Testbank Multiple Choice Question 59 Incorrect answer. Your answer is incorrect. Try again. Blossom Co. at the end of 2020, its
    6·1 answer
  • On March 28, 2008, Daniela Motor Financing (DMF), offered some securities for sale to the public. Under the terms of the deal, D
    6·1 answer
  • CallahanCallahan Pools manufactures swimming pool equipment. CallahanCallahan estimates total manufacturing overhead costs next
    10·1 answer
  • 10 percent increase in the price of soda leads to a 20 percent increase in the quantity of iced tea demanded. it appears that: _
    11·1 answer
  • You are considering how to invest part of your retirement savings.You have decided to put $ 400 comma 000 into three​ stocks: 56
    7·1 answer
  • Small organizations with fewer resources will need to separate RAs, but larger and better equipped organizations have streamline
    11·1 answer
  • Which of the following are financial careers? select all that apply.
    15·2 answers
  • Harold is a sales manager associated with TickTock Watches for the past thirty-five years; he was instrumental in the company's
    14·1 answer
  • Item 6 Worton Distributing expects its September sales to be 20% higher than its August sales of $168,000. Purchases were $118,0
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!