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kotykmax [81]
3 years ago
13

Suppose Aiyanna's pizzeria currently faces a linear demand curve and is charging a very high price per pizza and doing very litt

le business. Aiyanna now decides to lower pizza prices by 5 percent per week for an indefinite period of time. We can expect that each successive week:
A. demand will become more price elastic.
B. price elasticity of demand will not change as price is lowered.
C. demand will become less price elastic.
D. the elasticity of supply will increase.
Business
1 answer:
snow_tiger [21]3 years ago
7 0

Answer:

The correct answer is option A.

Explanation:

Price elasticity of demand measures the change in the quantity demanded due to a change in the price of the commodity. In order to increase the demand for pizza, Aiyanna decides to lower the price of pizza by 5% per week.  

With passage to time, the demand for a commodity becomes more and more elastic. This is because, with time, the consumers are able to get adjusted to price change.  So each successive week demand will become more price elastic.

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Colt Carriage Company offers guided​ horse-drawn carriage rides through historic Charleston comma South Carolina. The carriage b
chubhunter [2.5K]

Answer:

1) Colt Carriage Company

Income Statement

For the month ended April 202x

Revenues:

  • Adults passengers $186,300
  • Children $81,000                      
  • Total revenues                                       $267,300

Variable costs:

  • City fees $26,730
  • Souvenirs $7,425
  • Brokerage fees $11,340
  • Carriage drivers $52,650
  • Total variable costs                                  <u>$98,145</u>

Contribution margin                                        $169,155

Period costs:

  • Depreciation $2,900
  • Horse leases $48,000
  • Marketing expenses $7,350
  • Payroll expenses $7,600
  • Total period costs                                  <u>$65,850</u>

Operating profit                                             $103,305

2) If the total amount of passengers increase by 10%, then all variable costs will increase by 10% except brokerage fees which would increase only by 6%. Revenues should also increase by 10%. Period costs should not change.

Contribution margin should increase by 10.29% and operating profit would increase by 16.81%.

Explanation:

since the information is not complete, I looked it up:

Revenues

13,500 passengers:

8,100 x $23 = $186,300

5,400 x $15 = $81,000

total $267,300

variable costs:

fees paid to the city 10% of total revenue

souvenirs $0.55 per passenger

brokerage fees 60% of total tickets x $1.40

carriage drivers $3.90 per passenger

fixed costs:

depreciation $2,900

horse leases $48,000

marketing expenses $7,350

payroll expenses $7,600

4 0
3 years ago
Explain two benefits to society of business activity<br> PLS HELP<br> ILL GIVE BRAINLIST
Westkost [7]

Answer: Business can positively influence how society operates. It can build and maintain social capital through its core operations; the goods and services it provides; and the activities supported through increasingly global and complex supply chains.

Explanation:

3 0
1 year ago
Read 2 more answers
The Four Tops Company began operations on January 2nd. During the first 3 months of operations, only 3 jobs were worked on. Job
lianna [129]

Answer:

$81,500

Explanation:

As per the data given in the question,

The computation of the cost of goods manufactured is shown below:

Before that first we need to do following calculations

Direct material = $12,000 + $23,000

= $35,000

Direct labor = $11,000 + $20,000

= $31,000

Overhead applied = 50% of direct labor

= 50%×$31,000

= $15,500

Cost of goods manufactured = Direct material + Direct labor + Overhead applied

= $35,000 +$31,000 + $15,500

= $81,500

8 0
3 years ago
Scarcity, opportunity cost, and marginal analysis Alex is training for a triathlon, a timed race that combines swimming, biking,
lilavasa [31]

Answer:

D

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Marginal decisions involves considering the cost and benefit of taking a particular action. If the marginal benefit of taking a particular action exceeds the marginal cost, the activity should be undertaken

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2 years ago
The invention of the _____ is what distinguished modern restaurants from predecessor food service operations.
Levart [38]

The invention of restaurant foods is what distinguished modern restaurants from predecessor food service operations.

<h3>What is meant by food service operations?</h3>

An establishment that serves meals designed to be served in individual quantities for a fee or a mandated donation is known as a food service operation. Restaurants, nursing homes, hospitals, prisons, coffee shops, and candy stores are a few examples of FSO.

Controlling food expenditures is essential for a successful restaurant, which is why food service management is so important. FSMs assist firms in remaining profitable by training staff on serving and preparation standards, maintaining a careful inventory of stock, and identifying various sources for the most affordable ingredients.

The earliest signs of the food service sector date around 3000 BC during the Sumerian era. The majority of the time, temples and palaces served food. They hired chefs, who prepared meals for the aristocracy and visitors.

The invention of restaurant foods is what distinguished modern restaurants from predecessor food service operations.

To learn more about food service operations refer to:

brainly.com/question/26298316

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