1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Angelina_Jolie [31]
3 years ago
10

For each of the following scenarios, begin by assuming that all demand factors are set to their original values and Peacock is c

harging $200 per room
per night
&
If average household income increases by 20, from $50,000 to $60,000 per year, the quantity of rooms demanded at the
Peacock from rooms per night to rooms per night. Therefore, the income elasticity of demand is
hotel rooms at the Peacock are
meaning that
ols
If the price of an airline ticket from LAX to LAS were to increase by 10%, from $100 to $110 roundtrip, while all other demand factors remain at their
Initial values, the quantity of rooms demanded at the Peacock from rooms per night to rooms per night. Because the crosse
price elasticity of demand is
hotel rooms at the Peacock and airline trips between LAX and LAS are
Eiples of
Peacock is debating decreasing the price of its rooms to $175 per night. Under the initial demand conditions, you can see that this would cause its
total revenue to
Decreasing the price will always have this effect on revenue when Peacock is operating on
portion of its demand curve
the
Business
1 answer:
Elden [556K]3 years ago
8 0

<u>Solution and Explanation:</u>

For every one of the accompanying situations, start by expecting that all interest factors are set to their unique qualities and Peacock is charging $300 per room every night.  

1) If the normal family unit pays increments by 20%, from $50,000 to $60,000 every year, the amount of rooms requested at the Peacock ascends from 200 rooms every night to 250 rooms every night. Accordingly, the pay flexibility of interest is certain, implying that lodgings at the Peacock are ordinary products.  

<u>Explanation:</u> Income elasticity of demand = 25% divide by 20% = 1.3

At the point when raise in salary prompts an expansion in the amount requested (or a fall in pay prompts a fall in the amount requested), the great is known as an ordinary decent.  

2) In the event that the cost of an aircraft ticket from JFK to LAS was to increment by 10%, from $200 to $220 roundtrip, while all other interest factors stay at their underlying qualities, the amount of rooms requested at the Peacock tumbles from 200 rooms for every night to 150 rooms for each night. Since the cross-value versatility of interest is negative, lodgings at the Peacock and aircraft trips among JFK and LAS are supplements.

<u>Explanation:</u> Cross elasticity of demand = -25% divide by 10% = -2.5

Two merchandise ordered supplements when a raise the cost of one great abatement the amount requested of the other or when a fall in the cost of one great expands the amount requested of the other.  

3) Peacock is discussing diminishing the cost of its rooms to $275 every night. Under the underlying interest conditions, you can see this would make its all-out income increment. Diminishing the cost will consistently have this impact on income when Peacock is working on the flexible part of its interest bend.  

<u>Explanation:</u> Total revenue = $300 per room per night multiply with 200 rooms = $60,000 per night

By bringing down its cost to $275, Triple Sevens can occupy 225 rooms. In such situation, all-out income is $275 per room every night multiply 225 rooms = $61,875 every night  

At the point when the request is versatile, the rate change in cost is littler than the rate change in an amount as the purchasers are exceptionally delicate to changes in cost.

You might be interested in
What are factors of production?
Reika [66]
C: all the physical tools and equipment used in the production process. That would be the answer
4 0
3 years ago
THIS IS JOURNALISM!! NOT BUSINESS
Alex787 [66]

Answer: B.

Explanation: I would say B because they probably don't give two BLEEPS about an editor. And not C because it doesn't cost money to edit a entry.

5 0
3 years ago
Read 2 more answers
What is the term for an interval smaller than a step?.
Svetach [21]

Answer:

Half step

Explanation:

If you're talking about music, then a half step is smaller than a step.

7 0
3 years ago
Which of the following scenarios is an example of irrelevant media? A. Graphics that need to be split up and appear on two pages
gogolik [260]
I think the answer is C but don’t quote me on that
8 0
3 years ago
Read 2 more answers
Skyler Manufacturing recorded operating data for its shoe division for the year. Sales $4,500,000 Contribution margin 500,000 Co
Anna71 [15]

Answer:

Controllable margin= $300,000

Controllable margin in %= 33.3%

Explanation:

Controllable margin is sales revenue less controllable variable costs and fixed cost.

Controllable margin= Sales revenue - controllable variable cost - controllable fixed costs

Controllable margin= contribution margin - fixed costs

                                     = 500,000 - 200,000= 300,000

Controllable margin in %= 300,000/900,000 × 100 =33.3%

Controllable margin in %= 33.3

3 0
3 years ago
Other questions:
  • ​Ronny's Pizza House operates in the perfectly competitive local pizza market. If the price of pizza cheese​ increases, ceteris
    12·1 answer
  • Pharoah Company invests $10,400,000 in 5% fixed rate corporate bonds on January 1, 2017. All the bonds are classified as availab
    11·1 answer
  • Using your knowledge of SMART goals, select the best goal. I will start saving money toward a new house next week. I will save $
    10·1 answer
  • You are the manager of the packaging department in a cookie factory. (Obviously, the packaging employees cannot eat the cookies
    11·1 answer
  • Seth Silver had the following items of income during the taxable year: Interest income from a checking account $1,000 Interest i
    9·1 answer
  • Kevin is a first-line manager at a day spa. He interacts daily with his employees who run the front desk; perform massages, skin
    13·1 answer
  • Sam, a third-grader, really likes to look for interesting bugs with other people during recess. Each of Sam's friends offers to
    14·1 answer
  • What is a public corporation
    11·2 answers
  • Joe believes in providing a work setting and culture that encourage workers to be creative and inspire employees to work hard to
    13·1 answer
  • On December 1, 2015, Logan Co. purchased a tract of land as a factory site for $800,000. The old building on the property was ra
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!