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DaniilM [7]
3 years ago
14

If Sam's, a local watering hole, increased the price of a pint of Guinness by 20%, it estimates the number of MBA students purch

asing Guinness would decrease by 4%. Based on these data ____________ total revenues would increase because demand is elastic. total revenues would decrease because demand is elastic. total revenues would remain the same. total revenues would increase because demand is inelastic
Business
1 answer:
Leni [432]3 years ago
6 0

Answer:

Total Revenues would increase because Demand is Inelastic

Explanation:

Demand is buyers ability & willingness to buy at a given price, time.

Elasticity of Demand is quantity demanded responsiveness to price change.

More Elastic Demand means quantity demanded responds highly to change in price. Percentage Change in Quantity Demanded > Percentage Change in Price. Elasticity of Demand [Δ%Q / Δ%P] >1 in this case. Price and Total Revenue (PxQ) are inversely related in this case ; i.e - price rise, TR fall & price fall, TR rise.

Less Elastic Demand means quantity demanded responds less to change in price. Percentage Change in Quantity Demanded < Percentage Change in Price. Elasticity of Demand [Δ%Q / Δ%P] < 1 in this case. Price and Total Revenue (PxQ) are positively related in this case ; i.e - price rise, TR rise & price fall, TR fall.

So: If Sam's Pint price change by 20% leads to demand fall by 4%, the demand is less elastic i.e < 1. Hence, Total Revenue will increase with increase in price.

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Arada [10]

Answer:

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Explanation:

8 0
2 years ago
A manager of a store that sells and installs spas wants to prepare a forecast for January, February, and March of next year. Her
Andreas93 [3]

Answer:

JANUARY = 218.28

FEBRUARY = 184.8

MARCH = 207.36

Explanation:

Trend component of demand equation :

Ft = 90 + 6t, where t = 0 in June of last year

Seasonal relatives are ;

1.07 for January

0.88 for February

0.96 for March

Forecast for January, February and March of next year:

JANUARY :

last year June, 't' = 0,

[last year - this year - next year]

Therefore January of next year, 't' = 19

Ft = 90 + 6(19) = 204

Forecast = Ft × seasonal relative

Forecast = 204 × 1.07 = 218.28

FEBRUARY :

Therefore January of next year, 't' = 20

Ft = 90 + 6(20) = 210

Forecast = Ft × seasonal relative

Forecast = 210 × 0.88 = 184.8

MARCH:

Therefore January of next year, 't' = 21

Ft = 90 + 6(21) = 216

Forecast = Ft × seasonal relative

Forecast = 216 × 0.96 = 207.36

3 0
2 years ago
Kevin bought 290 shares of Intel stock on January 1, 2019, for $86 per share, with a brokerage fee of $190. Then, Kevin sells al
Yuliya22 [10]

Answer:

Gain $1,600

Explanation:

Amount Realized = (290 shares × $93) − $240

=$26,970-$240

= $26,730

Adjusted Basis = (290 shares × $86) + $190

=$24,940+$190

= $25,130

Gain = $26,730 − $25,130

= $1,600

Therefore the amount of the gain/loss Kevin must report on his 2019 tax return will be $1,600

6 0
2 years ago
Andy worked weekends for a month to complete a difficult project. he hoped that he would receive a raise if he successfully comp
bekas [8.4K]

<span>Andy’s motivation for working so hard is most likely the extrinsic motivation of a raise in his salary (money). </span><span> 

Extrinsic motivation refers to the phenomenon when behavior and actions are motivated  by external factors, such as rewards, fame or praise rather than intrinsic factors which lie within an individual (such as: improving one’s skills and work ethic or genuine interest in the task or project at hand).

In Andy’s case, where he is working so hard in hopes for a raise, he is externally motivated rather than internally motivated since he hopes to be monetarily rewarded </span>(extrinsic factor)for his hard work. 

7 0
3 years ago
Suppose that you are the vice president of operations of a manufacturing firm that sells an industrial lubricant in a competitiv
gladu [14]

Answer:

400

Explanation:

Qd = 45 - 2P

Qd    = -15 + P

45 - 2P = P - 15

60 = 3P

60/3 = P = 20

Q = 45 - 2*20 = 5

Q = -15+20 = 5

The quantity will be 5 and price 20

<u>Now we will caclulate the consumer surplus:</u>

Which the area of the demand curve above the equilibrium.

We calculate he area of a triangle:

base x high / 2

\frac{(45-5)\times20}{2}

consumer surplus = 400

7 0
3 years ago
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