Assume that a 4 percent decrease in income results in a 6 percent increase in the quantity demanded of a good. The income elasti
1 answer:
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Answer:
both
- United Continental with a capital expenditure of 60.68%
- Southwest Airlines with a capital expenditure of 51.38%
Explanation:
Since United Continental's purchases of Boeing planes represent over 60% of their capital expenditures, this means that Boeing had to be the primary plane supplier. Even if the company purchased planes form other manufacturer, their purchases would not even be 40% of the company's purchases.
The same applies to Southwest Airlines, even though the purchases from Boeing are a little lower, they are still over 51%. This means the company could not have spent more money on purchasing planes from another company. The maximum purchase from another airplane manufacturer would have been less than 49% at most.
Besides the previous analysis, you must also consider that the company spends money on things besides airplanes, e.g. new training facilities, equipment, computer software, other vehicles, etc.
Answer:
Follows are the solution to the given question:
Explanation:
In this question, we assume that there is no change in selling price.
So,
