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Leni [432]
3 years ago
5

The price elasticity of demand for tickets to local baseball games is estimated to be equal to 0.89. In order to boost ticket re

venues, an economist would advise:a. increasing the price of game tickets because demand is inelastic.b. not changing the price of game tickets because demand is unit elastic.c. increasing the price of game tickets because demand is elastic.d. decreasing the price of game tickets because demand is elastic.
Business
1 answer:
ankoles [38]3 years ago
5 0

Answer:

The correct answer is option a.

Explanation:

The price elasticity of demand for tickets to a baseball game is 0.89. This means that the demand is relatively inelastic.

Relatively inelastic demand means that a change in price will lead to a less than proportionate change in quantity demanded.

So at this point, if the price of tickets is increased, the decrease in price will be less than proportionate. This will lead to an increase in revenue and hence profits.

So to increase the revenue price of tickets should be increased.

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3 years ago
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Nikola Motors has a quick ratio of 2.00; $38,250 in cash; $21,250 in accounts receivable; some inventory; total current assets o
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Answe2.55 times

Explanation:

Current assets represent the resources of short-term nature which a business expects to convert back to cash between a year. They include inventory, receivables.

Inventory turnover is the average number of days it takes a Nikola Motors to sell its its stock and replenish it. This can be determined by either working it out in number of times the stock is sold and replenished or the length of days its takes to do same.

The formula for both are given below:

Inventory turnover( no of times) = Cost of goods sold / average inventory

                                                <em>    = x number of times</em>

Inventory days = (Average inventory/ Cost of goods sold) *365 days

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<em>Note: The inventory figure was not given in the question, but we can work it out;</em>

Current assets= cash + inventory + receivables

85,000 = 38,250 + 21,250 + y                           <em>Lets "y "demote inventory</em>

y = 85,000 - 38250 - 21, 250

y= 25,500

<em />

<em>Also we need to work out cost of sold;</em>

Cost of goods sold = 65% × 100,000

                                = 65,000

<em>Now we can work out the inventory turnover;</em>

Inventory turnover =  65,000/25,500

<em>                             </em>  =  2.55 times

Nikola Motors is seling and replacing its inventory 2.55 times

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