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morpeh [17]
3 years ago
9

The south beach cafe recently reduced appetizer prices from $7 to $5 for afternoon "early bird" customers and enjoyed a resultin

g increase in sales from 100 to 150 orders per day. Beverage sales also increased from 300 to 600 units per day. Calculate the arc price elasticity of demand for appetizers.
Business
1 answer:
Rufina [12.5K]3 years ago
6 0

Answer: Elasticity is -1.2

Explanation:

Price elasticity of demand measures the responsiveness of quantity demand to a change in the price of the good.

Change in price = $7 - $5 = $2

Change in Quantity = 100 - 150 = - 50

Elasticity using the Ac method is,

e= \frac{100 - 150}{\frac{100 + 150}{2} } * \frac{\frac{7+5}{2} }{7 - 5}

e= \frac{-50}{125} * \frac{6}{2} }

e= -1.2

Thus, elasticity of demand for appetizers is -1.2.

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Market anomaly refers to _______.A. an exogenous shock to the market that is sharp but not persistentB. a price or volume event
Klio2033 [76]

Answer:

the correct answer is C. A trading or pricing structure that interferes with efficient buying and selling of securities.

Explanation:

7 0
4 years ago
Which of the following is not a financial intermediary?
EastWind [94]

Answer:

Commercial business.

Explanation:

An institution that facilitates the channeling of funds between lenders and borrowers indirectly. And this all are the examples of the same.

Banks.

Mutual savings banks.

Savings banks.

Building societies.

Credit unions.

Financial advisers or brokers.

Insurance companies.

Collective investment schemes.

cooperative societies

Stock exchanges

Commercial business is not a financial intermediary, but this includes the distribution of goods & services and this include all the asset and liabilities of the business and doesn't take into account the operations.

4 0
3 years ago
Successful entrepreneurs are self-nurturing. This means they: A. look to others for strength and encouragement.B. self-finance t
liraira [26]

Answer:

D. believe in themselves and their ideas.

Explanation:

The entrepreneurs will look at other strength and ecouragement. They will finance through both, own and lended funds. The operations will be delegate to their employee and managers if needed. A single person cannot do all the work for a company. It will require to delegate.

The importance of sel-nurturing is to trust on his idea and business vision. Having confidence into their abilities will increase their chance of success.

3 0
3 years ago
A firm with no debt has 200,000 shares outstanding valued at $20 each. Its cost of equity is 12%. The firm is considering adding
Kipish [7]

Answer:

Option (C) is correct.

Explanation:

Given that,

No. of shares = 200,000

Market value per share = $20 each

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Debt amount = $1,000,000

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= Market value of equity + (Tax rate × Debt)

= (No. of shares × market value per share) + (Tax rate × Debt amount)

= (200,000 × $20) + (0.34 × $1,000,000)

= $4,000,000 + $340,000

= $4,340,000

= $4.340 million

The firm be worth after adding the debt is $4.340 million.

7 0
3 years ago
Kornett Company during its first fiscal year ended December 31, 2016, Journalize the selected transactions, starting on page 21
weqwewe [10]
I'll answer number 2 and 3. 

Bank Reconciliation:
Bank statement Balance:                          283,000
Add: Deposit in Transit                                 29,500
Deduct: Checks Outstanding                 <u>   (68,540)
</u>Adjusted Bank Statement Balance        243,960
<u>
</u>Book Reconciliation:
Ledger Balance:                                          245,410
Deduct:
Bank debit memo for service charge             (750)
Understatement of issued check            <u>         (700)</u>
Adjusted Book Statement Balance        243,960

3. Adjusting entries on Book reconciliation.
Miscellaneous Admin. Expense acct for bsc.     750
                    Cash in Bank                                                         750

*Assuming that accounts payable was the account used in the set up of the invoice.
Cash in Bank                                                          12,000
                     Accounts Payable                                           12,000

Accounts Payable                                                   12,700
                     Cash in BAnk                                                    12,700
3 0
4 years ago
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