The most suitable choice here is A) They distribute samples and free trials as a way to gauge public interest in their product.
I hope that helps.
Answer:
Both price and quantity rise
Explanation:
The reduction in soda prices boosts soda demand. As moviegoers typically enjoy popcorn along with their drinks, this spike in soda demand can lead to increased demand for popcorn, thereby raising both its price and quantity.
Answer:
2.33; the demand for movies is elastic
Explanation:
Below is the calculation for price elasticity of demand:
= (change in quantity demanded ÷ average of quantity demanded) ÷ (percentage change in price ÷ average of price)
Here, the change in quantity demanded is defined as
= Q2 - Q1
= 30 - 15
= 15
The average quantity demanded is
= (30 + 15) ÷ 2
= 22.50
The change in price is computed as
= P2 - P1
= $8 - $6
= $2
And the average price is
= ($8 + $6) ÷ 2
= 7
Thus, after computing, the result for price elasticity of demand is 2.33
As we were not instructed on the method for calculation, the mid-point formula was utilized.
From this calculation, we deduce that the demand for movies is indeed elastic.
A team ought to allocate rewards collectively rather than to individuals, as successful teams thrive on collaboration instead of rivalry. Providing rewards to individuals based on their contributions can diminish team effectiveness. For instance, if specific team members receive preferential treatment, it could foster competitiveness among them.
Answer:
Option (D) is the right choice.
Explanation:
According to the Modigliani-Miller proposition, the cost of equity will adjust in a way to accommodate its debt obligations.
Cost of equity:
= WACC for an all-equity firm + (WACC for an all-equity firm - Cost of debt ) × (Debt-to-equity ratio)
Initially, when no debt was present,[ [TAG_20]]
WACC = cost of equity = 10%
The levered cost of equity:
= 10% + ( 10% - 6%) × 0.2
= 10.8%
Thus, Taggart's levered cost of equity would be approximately 11%.
