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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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4 years ago
Invested Capital Corporation provides other firms with funds to expand operations. If Invested Capital strictly complies with ex
soldi70 [24.7K]

Answer:

c. be partially met

Explanation:

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A business has an ethical obligation to make profit for its owners and also to give back to society by supporting other busines growth.

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4 years ago
First National Bank charges 13.7 percent compounded monthly on its business loans. First United Bank charges 14 percent compound
Liula [17]

Answer:

First National Bank    = 14.6%

First United Bank.=   = 14.8%

Explanation:

<em>Effective annual rate is the equivalent annual rate o where interest rate is compounded at an interval shorter than a year.</em>

It can be calculated as follows:

EAR = ( (1+r)^(n) -1) × 100

r -interest rate per period

n- number of period

EAR - Effective annual rate

First National Bank

r - interest rate per month = 13.7%/12 = 1.141%

number of period = 12 months

EAR =( (1+011141)^(12) - 1) × 100

       =  0.145938395 × 100

       = 14.59

      = 14.6%

First United Bank.

r- interest rate per quarter - 14%/4 = 3.5% per quarter

n- number of quarters = 4

EAR = ((1+0.035)^(4)- 1) × 100

      = 0.147523001 × 100

      = 14.8%

 

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3 years ago
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The federal government relies mostly on revenue from _____.
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3 years ago
Read 2 more answers
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