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N76 [4]
2 years ago
5

When the price of a movie ticket rises from $6 to $8 for senior citizens, Gary (a senior citizen) decides to go to the movies ev

ery other day (15 times per month) instead of every day (30 times per month). Calculate the price elasticity of Based on your results comment on whether movies are elastie or tickets? demand for movie inelastic?
Business
1 answer:
Aleonysh [2.5K]2 years ago
7 0

Answer:

2.33 ; demand for movies is elastic

Explanation:

The computation of the price elasticity of demand is presented below:

= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)  

where,  

Change in quantity demanded is

= Q2 - Q1

= 30 - 15

= 15

And, an average of quantity demanded is

= (30 + 15) ÷ 2

= 22.50

Change in price would be

= P2 - P1

= $8 - $6

= $2

And, the average of price is

= ($8 + $6) ÷ 2

= 7

So, after solving this, the price elasticity of demand is 2.33

Since it is not given by which method we have to calculate it. So, we use the mid point formula.

Based on the above calculation, we concluded that the demand for movies is elastic

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Answer:

C). green marketing.

Explanation:

Green marketing can be regarded as the marketing of products/services which are presumed as an environmentally safe products. It involves range if activities such as modifications of products, change in process of production, modifications of advertisement as well as sustainability packaging of products. It should be noted that Specific development, pricing, promotion, and distribution of products that do less harm to the environment are known as green marketing

8 0
2 years ago
On May 15, 2000 you enter into a 1-year forward rate agreement (FRA) with a bank for the period starting November 15, 2000 to Ma
Artyom0805 [142]

Answer:

a.

3.51%

b.

0%

Explanation:

a.

First, we need to calculate the YTM of 6 months zero-coupon bond by using the following formula

Price = Face value / ( 1 + YTM )^numbers of years

96.79 = 100 / ( 1 + YTM )^1

1 + YTM = 100 / 96.79

1 + YTM = 1.0331646

Now calculate the YTM of 1 Year zero-coupon bond

93.51 = 100 / ( 1 + YTM )^1

YTM = 1.0331646 - 1

YTM = 0.0331646

YTM = 3.31646%

YTM = 3.316%

1 + YTM = 100 / 93.51

1 + YTM = 1.06940

YTM = 1.06940 - 1

YTM = 0.06940

YTM = 6.940%

YTM = 6.94%

Hence the forward rate is calculated as follow

Forward rate = [ (1 + YTM of 1 year zero coupon bond ) / ( 1 + YTM of 6 months year zero coupon bond ) ] - 1 = ( 1 + 6.94% ) / ( 1 + 3.316% ) = [ 1.0694 / 1.03316 ] - 1 = 1.03508 - 1 = 0.03508 = 3.508% = 3.51%

b.

At the time of inception the formward rate is 0.

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C increase the money supply in the economy

Explanation:

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Explanation:

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