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
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.

You might be interested in
Domino's Pizza was 50 years old in 2010. Visit the company's business-related website (www.dominosbiz) and read the company prof
RUDIKE [14]

Answer:

Consider the following paragraph I wrote

Explanation:

I think the firm focuses on the economic perspective in describing its competitive advantage. In the economic perspective, a firm focuses on how much economic value it creates through its competitive advantage.

In the company profile, Domino's focuses on how much economic value it creates for its sub-franchisees, franchisees and the parent company. It focuses more on the chain which creates economic value for the entire Domino's ecosystem consisting of the parent company, franchisees, and the sub-franchisees. So, I think the firm focuses on economic perspective in describing its competitive advantage.

4 0
3 years ago
Physicians' Hospital has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $44,000; Allo
ivanzaharov [21]

Answer:

Entry: 1. Dr bad debts expense  5500

                    Cr Allowance for uncollectible accounts  5500

Explanation:

1.Account receivable =  $44000

Allowance for uncollectible accounts(Dec,31 2021) = $1100

44000* 15% = 6600 - 1100 = $5500 Allowance for uncollectible accounts

2.  Bad debts expense =  (44000* 15%) = 6600

3. Uncollecible accounts = (Open) Allowance for bad debts + Current year Allowance.

                         =  1100 + 6600 = $7700.

4. 44000 - 7700 = $36300 net account receiable

6 0
3 years ago
What type of relationship do a lawyer and a client have?
VMariaS [17]
Business related purpose. There is no serious connection just lawyer to client and client to lawyer
7 0
3 years ago
On June 30, 2018, Baird Company’s total current assets were $502,000 and its total current liabilities were $274,000. On July 1,
amm1812

Answer:

Before issuing the note

Current ratio

= <u>Current assets</u>

   Current liabilities

= <u>$502,000</u>

  $274,000

= 1.83: 1

After issuing the note

Current ratio

= <u>$538,400</u>

  $274,000

= 1.96:1

Explanation:

Current ratio is the ratio of current assets to current liabilities. Before issuing the note, current assets amounted to $502,000 while current liabilities were $274,000. After issuing the note, current assets increased to $538,400 as a result of $39,400 received on note issue. This increases the current ratio from 1.83 to 1.96.

7 0
3 years ago
With respect to how economists study the economy, which of the following statements is most accurate?a. Economists study the pas
NARA [144]

Answer:

c. Economists devise theories, collect data, and analyze the data to test the theories

Explanation:

Economists use past data to predict the future.

They make use of sound economic theory instead of rule of thumb to predict the future.

I hope my answer helps you

4 0
3 years ago
Other questions:
  • ​some of the entrepreneurs' personal factors in small-business success include
    5·1 answer
  • Select the items below that are examples of things that could use the smart card
    8·1 answer
  • Which is NOT true of the various methods of allocating service department costs?
    6·1 answer
  • What are some stories that u motivated ur friend not to do
    9·1 answer
  • Assume that the amount of money deposited in a bank is proportional to the square of the interest rate the bank pays on this mon
    7·1 answer
  • You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dolla
    9·1 answer
  • While driving to school, Brandon thinks about his upcoming midterms. When he reaches campus, he realizes that he doesn't remembe
    10·1 answer
  • No More Pencils, Inc., disburses checks every two weeks that average $87,000 and take six days to clear. How much interest can t
    13·1 answer
  • An analysis of a firm's financial ratios over time that is used to determine the improvement or deterioration inits financial si
    10·1 answer
  • List a professional example for voicemail
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!