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devlian [24]
3 years ago
13

The owner of Bob's Breakfast just bought Nancy's Famous Breakfast across the street. The offer the same breakfast items on the m

enu. The demand fro Bob's Breakfastis more elastic than Nancy's Famous Breakfast. What should the owner do?
a.Reduce the prices at Nancy's Famous Breakfast
b.Raise the pricesat Bob's Breakfast
c.Raise the prices at both restaurants equally
d.Raise the prices at both restaurants, but raise the price of Bob's Breakfast more
Business
1 answer:
Ratling [72]3 years ago
7 0

Answer:

d.Raise the prices at both restaurants, but raise the price of Bob's Breakfast more.

Explanation:

Price elasticity is a measure of responsiveness of quantity demanded to changes in price.

When price is inelastic change in price results in small or no change in demand.

When price is elastic a small change causes a large change in demand.

If the owner increases price for Nancy's Famous Breakfast and places a even higher price for Bob's Breakfast, the customers that patronise Bob's Breakfast will reduce. Those that stay will pay higher price.

More people will buy from Nancy's Famous Breakfast also at an increased price.

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An investment bank agrees to underwrite an issue of 15 million shares of stock for Looney Landscaping Corp.
Naya [18.7K]

Answer:

A) Looney Landscaping will receive $187,500,000 (= $12.50 x 15,000,000 shares)

The bank's profit will be $11,250,000 (= ($13.25 - $12.50) x 15,000,000 shares)

B) Looney Landscaping will receive $166,260,000 (= ($12.50 - $0.275) x 13,600,000 shares)

The bank's profit will be $3,740,000 (= $0.275 x 13,600,000 shares)

If the stocks are sold at $11.95 per share, then Looney Landscaping will receive  $158,780,000 (= ($11.95 - $0.275) x 13,600,000 shares)

The bank's profit will be the same, $3,740,000

6 0
3 years ago
g The company plans a 4-for-1 stock split. How many shares will you own and what will the share price be after the stock split?
Nata [24]

Answer: 14,400; $17

Explanation:

Stock splits are a strategy by firms to increase the liquidity of their shares especially when they are trading at a high price. The firm divides the stock by a certain number thus increasing the number of shares by the multiple of the number. This action will divide the price of the stock and thus allow for more trade as they are cheaper.

A 4-for- stock split means that each share will become 4.

Your total number of share will become;

= 4 * 3,600

= 14,400 shares

The new price will be;

= 68/4

= $17 per share

7 0
2 years ago
Finding out how a product or service will do in a certain market is an example of this use of market research: identify if commu
Veseljchak [2.6K]

Answer:

identify value

Explanation:

Finding out how a product or service will do in a certain market is an example of this "IDENTIFY VALUE" market research. This will help the producers understand and know what the consumers want and the degree of value they placed on their products.

identify if communications are effective is used determine who the consumers are and the type of media preferred.

identify if consumer needs are being met is used to determine what customers like or dislike about a product or service.

identify threats and investigate the competition is used to determine changes in consumer preferences and competition

8 0
3 years ago
What is the oldest retailer still operating in the u.S.?
Tom [10]

Answer:

Brook brothers is the oldest that is still doing business today

First store was open in 1818

3 0
2 years ago
What three factors that had a negative impact on the financial performances of unibic in its early years?
Ugo [173]

Answer:

Price of unibic, preference for other glucose biscuits, and inadequate marketing and branding campaigns had a negative impact on the financial performances of unibic in its early years

Explanation:

The three factors that negatively impacted the financial performances of unibic in its early years were as follows

a) The price of Unibic cookies was higher as compare to its other competitors.

b) During those days, glucose biscuits were preferred as compared to bakery cookies of Unibic

c) Packaging, branding and marketing  not as per the public requirement

4 0
2 years ago
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