Answer:
2.77
the bus company should decrease price to increase revenues.
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
percentage change in price = 1.21 / 0.99 - 1 = 0.222 = 22%
Percentage change in quantity demanded = 169 / 433 = -0.6097 = - 60.97%
Elasticity of demand = 60.97% / 22% = 2.77
Demand is elastic, so if price in reduced, there would be a rise in quantity demanded that would exceed the rise in price. This would increase revenues
Answer:
faces exchange rate risk to the extent that it has international competitors in the domestic market.
Explanation:
Exchange rate risk is defined as the risk that exists when a company engaged in transactions that are denominated in a foreign currency rather than the domestic currency.
So if a purely domestic firm that sources and sells only domestically has international competitors in its local market, and the exchange rate is favouring the competitors there will be a risk for them.
For example if international competitors can source raw materials cheaper because of the exchange rate of a foreign country, it will be a disadvantage to local firms that cannot reduce their prices.
Answer:
As per Chegg guidelines .
Explanation:
For a high-context culture, the social environment or social context has more importance than the words being spoken. This means that in a high context culture, low-contex culture is not as important as the nonverbal communication, because nonverbal communication has more importance . For the high-context culture, a contract is just a beginning point for negotiations in closing the deal. Signing of the contract does not necessary means closing of the business deal. Some of the examples of high-context cultures are China, most Arab countries, Latin America, most African countries, most other Asian countries, and Italy. In reality, most cultures fall somewhere along a continuum, or sliding scale, in their perception of the importance of context (with high and low being the end points of the continuum
Answer:
$75,000
This option has not been provided
Explanation:
Cash provided by operating activities
Net Operating Income
Add: Depreciation
Add: Decrease in current assets
Add: Increase in Current Liabilities
Using the information in question, we have
Cash Provided by operating activities = $57,000 + $5,000 + $4,000 + $9,000 = $75,000
None of the above is the right answer as the correct option is not available.
