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Alinara [238K]
3 years ago
13

According to one study, the price elasticity of demand for restaurant meals is 2.27. This implies that if restaurants want to in

crease their total revenues they should_______________.
a. decrease price.
b. leave price unchanged.
c. increase price.
d. cannot be determined with the information given.
Business
1 answer:
mixas84 [53]3 years ago
3 0

Answer:

(A) decrease price

Explanation:

Price elasticity is a measure showing how consumers react to the prices of products and services. It is a measure of the relationship between a change in the quantity demanded of a particular good and a change in its price. When the price rises, demand decline and when price declines, demand rises. Also, depending on the product/service and the market, how consumers react to a price change can vary.

Therefore, if restaurants want to increase their total revenues they should decrease their price as that result to rise in demand, and consequently increase in their total revenues.

You might be interested in
The basic formula for the price elasticity of demand coefficient is.
Kitty [74]

Percentage change in quantity demanded/percentage change in price is the basic formula for the price elasticity of demand coefficient.

<h3 /><h3>What is price elasticity?</h3>

Price elasticity is the degree of an individual that person or a consumer can pay to the change in the price of the commodity, it is calculated the price a consumer is willing to pay versus the amount of quantity supplied to the person.

Thus, Percentage change in quantity demanded/percentage change in price

For more details about Price elasticity, click here:

brainly.com/question/13565779

#SPJ1

4 0
2 years ago
Barbara Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following e
Amanda [17]

Solution :

Date       Account                                                           Debit($)           Credit($)

April 2     Cash                                                               27,330

               Equipment                                                      14,650

               Capital                                                                                      41,980

April 2     No journal is required on hiring employee

April 3     Supplies                                                         338

                Accounts payable                                                                    338

April 7     Rent expense                                                590

              Cash                                                                                            590

April 11   Accounts receivable                                       929

             Service revenue                                                                          929

April 12  Cash                                                                3021

             Unearned service revenue                                                        3021

April 17  Cash                                                                2535

             Service revenue                                                                         2535

April 21  Insurance expense                                        101

              Cash                                                                                             101

April 30   Salary expense                                             1352

               Cash                                                                                            1352

April 30  Supplies expense                                          138

              Cash                                                                                              138

April 30  Computer                                                        5841

              Capital                                                                                          5841          

3 0
3 years ago
A city with a 12/31 fiscal year-end requires that restaurants buy a license, renewable yearly. Proceeds of the license fees are
stiks02 [169]

Answer:

c) $210

Explanation:

Revenue is recognized in the year in which it is intended to finance an activity.

The Cash collected During 2014 relating to licences will be used to finance the salaries for the inspectors during 2014 and cash collected during 2014 = $210 (30+180)

8 0
3 years ago
Suppose that a 5-year Treasury bond pays an annual rate of return of 2.9%, and a 5-year bond of the fictional company Risky Inve
solniwko [45]

Answer:

The risk premium is 4.4%

Explanation:

The risk premium on any given investment is the difference between the risky investment and the risk free investment and in this case we know treasury bonds are risk free and offer a certain return of coupons because they come from governments rather than the fictional ones like the one from risky investment inc so to find the risk premium we say :

Risk Premium = Risky investment rate - Risk free investment Rate

                       = 7.3% - 2.9%

                      = 4.4%

3 0
3 years ago
Read 2 more answers
On January 1, 2018, Byner Company purchased a used tractor Byner paid $3,000 down and signed a noninterest-bearing note requirin
Sedbober [7]

Answer:

tractor   35,127,42 debit

      note payable         32,172.42  credit

     cash                           3,000     credit

--to record issuance--

Note payale end of 2018

39,584.19

note payables at Dec 31th

Note payable at the end of 2019

39,584.19

note payables at Dec 31th

Explanation:

As the note has zero.interest we discount the note to get the present value:

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

Maturity  $44,000.0000  

time   3.00  

rate  0.11

\frac{44000}{(1 + 0.11)^{3} } = PV  

PV   32,172.42  

The difference will be a discount that will acrrue interest overtime.

the truck will enter the accounting net of interest charges thus:

3,000 downpayment + 32,127.42 = 35,127.42‬

interest will be: 32,127.42 x 1.11 = 32,127.41

<u><em>Then, do the same for 2019</em></u>

(32,127.41 + 3,532.0162) x 1.11 = 39,584.19

5 0
3 years ago
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