<span>Service can play a big part in whether or not a person would be willing to pay more for an item. Through add-ons like free shipping, assistance with product selection, and support if/when the product fails, the customer can discriminate between products and companies that might offer similar goods.</span>
Answer:
$11,250
Explanation:
The computation of depreciation expense for the second year is given below:-
Double declining rate = 1 ÷ 8 × 2
= 25%
Here, for computing the depreciation for 2nd year we need to first calculate the 1st year of depreciation.
Depreciation for the 1st year = Purchase cost × Double declining rate
= $60,000 × 25%
= $15,000
Depreciation for the 2nd year = (Purchase cost - Depreciation for the 1st year) × Double declining rate
= ($60,000 - $15,000) × 25%
= $45,000 × 25%
= $11,250
Answer:
Elastic
DECREASED
Explanation:
The price elasticity is elastic. Demand is price elastic if the absolute value of coefficient of elasticity is greater than 1.
When demand is elastic, it means that quantity demanded is sensitive to changes in price. A small change in price would lead to a greater change in quantity demanded.
Because the parking lot has been operating below its full capacity and marginal cost is zero, the optimal strategy is to reduce price so that quantity demanded would increase.
I hope my answer helps you
