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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.

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Mr. and Mrs. Atoll are planning a party for 10 people and want to make sure they have enough soda for everyone to have two bottl
Rama09 [41]

Answer:

3. one case of 24 sodas @ $ 18.50

Explanation:

The question requires that the hosts need to have enough to have two sodas each. The number of guests being 10, the requirement is to have 20 sodas.

Now comparing the various pack sizes available:

1. 20 sodas $ 1.50 per bottle, Total cost $ 30, per serving cost $1.50

2. 4 6 packs @ $ 5 each. Total cost $20, Per serving cost $0.83

3. 24 soda case @ $18.5. Total cost $ 18.50, Per Serving costs $ 0.77

4, 2 x 24 soda cases @ 18.50. Total Cost $ 37.00 Per serving costs $ 0.77

The per serving costs are the same in 3 & 4 above, however, since the requirement is to have 20 sodas and the overall costs as well as the per serving costs is the best in option 3, this is the preferred option.

8 0
3 years ago
Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United State
STALIN [3.7K]

Answer:

d. globalization.

Explanation:

In this scenario, Brazilian Juice, a manufacturer of healthy fruit juices in Brazil, sells juice in six different countries including United States. Hence, we can safely conclude that Brazilian juice is engaging in globalization.

Globalization can be defined as a strategic marketing process which involves rapidly, effectively and efficiently providing finished goods and services to meet the needs of potential customers across the world or in various countries across the globe.

<em>Simply stated, it involves the spread of products, technology, and significant investments across many countries in the world. </em>

5 0
3 years ago
The large foreign supply of funds to the U.S. market is partially attributed to the a. low foreign saving rates. b. high foreign
Grace [21]

Answer:

a. low foreign saving rates.

Explanation:

As foreing countries saving rates are lower than US after conidering inflation and risk premium; people from abroad prefers to invest in the US than in their native country as feel it more safe and more prosperus also, they can yield better return in US dollars as their countries are exposed to decreases in the exchange-rates

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3 years ago
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Art [367]
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2 years ago
Cash receipts from sales of property plant and equipment (ppe)are cash flows arising from?​
VMariaS [17]

Answer:

Investing activities

Explanation:

Investing activities refer to the activities of purchasing and selling long-term assets or other investment instruments.  Cash flow from investing activities is among the three primary sources of a business's cash flows as recorded in a cash flow statement.

Other activities that are considered investing activities include

  1. Acquisitions of other firms or businesses
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