Answer:
The answer is below
Explanation:
i) The price elasticity of demand is given by the formula:

Since the price elasticity of demand is greater than 1 hence it is elastic
ii) Since the price elasticity of demand is elastic as a result of increase in fare, hence the total revenue would decrease.
iii)

Since the price elasticity of demand is greater than 1 hence it is elastic
Answer:
Explanation:
Omaha Miami
Earnings Earnings Value of Quality Life Expense to Move to Miami Net Value Difference in Value
Alex 200000 180000 40000 5000 215000 15000
Bobby 120000 150000 40000 5000 185000 65000
Cory 315000 300000 25000 5000 320000 5000
Dana 150000 100000 25000 5000 120000 -30000
Tied mover – any person who moves with their partner even if the person's employment is better at the present location.
Assuming all the friends agree on moving to Miami, Dana will compromise in value, therefore, Dana is the Tied Mover.
Tied Stayer – any of them who stays with the partner at current location even if the person's employment opportunity is better somewhere else.
Assuming all the friends decided to be in Omaha, Alex, Bobby and Cory will compromise in value, therefore, Alex, Bobby and Cory are the Tied Stayers.
Answer:
The amount of cash collections from customers reported by Alex company for the year ended December 31, 2018 is $4,125,000.
Explanation:
Cash collection refers to the collection of cash from from an individual or a business whom invoice has been issued to. Any invoice unpaid are noted as being outstanding.
Cash collection fomular is therefore;
Cash collection = Sales on account + Cash sales + Decrease in accounts receivable
=$2,100,000 +$1,110,000 + $915,000
=$4,125,000
Answer:
The amount to be paid for the contract today = $220,908.32
Explanation:
<em>The amount to be paid for the contract today will be equal to the present value of the annuity of $22,500 payable for 20 years discounted at a rate of 8% per annum.</em>
Present Value = A ×( 1 - (1+r)^(-n))/r
A- 22,500, r- rate of return - 8%, n -no of years 20 years
PV = 22,500 ×( 1-(1.08)^(-20) )/ 0.08
PV = 22,500 ×9.8181
PV = $220,908.32
The amount to be paid for the contract today = $220,908.32