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Keith_Richards [23]
3 years ago
12

A restaurant sells three wines at $30, $40, and $50 per bottle. When it adds another wine to the list at a price of $22, the sal

es of the $30 wine increase by 50%. This is an example of (A) a context effect; (B) risk aversion; (C) self-control problems; (D) randomization.
Business
1 answer:
valentinak56 [21]3 years ago
5 0

Answer:

Option (A) A context effect

Explanation:

A context effect is a psychological effect in which the choices are influenced by the surrounding environmental conditions.

Here in the given question the addition of $22 wine bottled in the list influenced the customers perception as they may have started to feel that $30 is better and economic option and its price is near to the cheapest wine.

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Answer: $‭412,600‬

Explanation:

AFN = Increase in assets - Increase in Liabilities - Addition to Retained Earnings

Increase in Assets

= 5,000,000 *  15%

= $750,000

Increase in Liabilities

Only use Accruals and Accounts Payable

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Additional to Retained Earnings

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Addition to retained earnings = 368,000 * ( 1 - payout ratio)

= 368,000 * ( 1 - 45%)

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Additional Funds Needed (AFN) = 750,000 - 135,000 - 202,400

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