Demand for movie rentals is highly elastic. What will happen if a video store raises the price of a rental?
It could possibly gain or lose revenue.
It would see no change in revenue.
It will lose revenue
It will gain revenue.

Answers

Answer 1

Answer:

It will lose revenue

Explanation:

An elastic demand (which are found in goods or services that have substitutes) moves proportionally to price changes.

It means that, if the price of the good rise, then the demand will diminish. The opposite works the same, if the price reduces, then the demand will grow.

On the other hand, elasticity refers to the impact of the prices on the demand of the goods and there are key factors that influence this relation:

Necessity of the good (or product) The existence of substitutes goods or alternatives to those goods Time

Answer 2

Answer: It will lose revenue.

Explanation: Elasticity of demand basically measures the degree of responsiveness of the quantity demanded to a slight change in the price of the commodity/service. Imagine holding an elastic band on one hand and tugging at it with other hand. It will respond to your pull (by stretching), but the length to which it can stretch is it's elasticity. It might be significant or it might be very unnoticeable.

Hence if the demand for movie rentals is described as "highly elastic" it simply means the consumers' response to a slight change in price (either increase or decrease) would be significant. Therefore if a video store raises the price of a rental under the given circumstances, it will lose revenue for sure.

This follows the law of demand that states clearly, "...all things being equal, the higher the price of a commodity/service,the lower the quantity demanded for that commodity/service and, the lower the price of a commodity/service the higher the quantity demanded for that commodity/service." This is a certainty as far as the commodity is classified as a normal good.


Related Questions

The Hahns have a right to exercise their religion. Does this right transfer to any corporations they own?

Answers

Answer:

In law, a corporation is regarded as an individual person but this does not give a corporation the the right of religion as it is not a natural person.

A corporation in its internal culture may however promote a religion in a non oppressive and a non intimidating way but cannot force anyone to adhere to a certain religion.

Explanation:

Final answer:

The Supreme Court ruled that closely held for-profit corporations can exercise religious rights under the Religious Freedom Restoration Act of 1993, allowing them to be exempt from ACA's contraceptive mandate due to their owners' religious beliefs.

Explanation:

The Supreme Court has indeed recognized the ability of corporations to exercise religion under certain circumstances. In the landmark case of Burwell v. Hobby Lobby Stores, Inc., the Court held that closely held, for-profit corporations have free exercise rights under the Religious Freedom Restoration Act of 1993. This decision came about because the contraception mandate in the Affordable Care Act (ACA) was found to impose a substantial burden on the exercise of religion by the corporations' owners, who have sincere religious objections to providing certain types of contraception in healthcare plans. The Court determined that there were less restrictive means of achieving the government's goals, such as a Department of Health and Human Services' exemption originally intended for non-profit religious organizations, which they extended to apply to for-profit entities like Hobby Lobby.

Additionally, it's important to note that the decision is specific to the contraceptive mandate and does not necessarily imply that all religious objections to the ACA would be upheld. It highlights that the rights of corporate owners to exercise their religion through their business enterprises can sometimes be protected against government mandates that conflict with their religious beliefs.

On January 1, 2022, the Sheridan Company ledger shows Equipment $49,700 and Accumulated Depreciation $18,280. The depreciation resulted from using the straight-line method with a useful life of 10 years and a salvage value of $4,000. On this date, the company concludes that the equipment has a remaining useful life of only 2 years with the same salvage value.Compute the revised annual depreciation.

Answers

Answer:

revised annual depreciation will be : 13710

Explanation:

After revision the remaining life of equipment shrank down to 2 years, so the depreciation working will be worked out to adjusted the impact of decreasing of useful life.

As per existing information the depreciation charges are calculated as :

(Cost-Salvage Value)/Useful life= (49700-4000)/10 = 4570

Accumulated Depreciation indicates that 4 years have past by (18280/4570)

now remaining years are 6 which will be reduced to 2 after revision so the new working will be as follows:

Remaining Cost :31420  (49700 -18280)

Salvage Value : 4000

Revised Remaining Useful Life  : 2

Revised Calculated Depreciation Annual  : (31420-4000)/2 = 13710

It can be further verified through simple math also:

Adding annual depreciation of remaining 2 years : 13710 +13710 =27420

Value available for depreciation after salvage value : 31420 -4000= 27420

The revised annual depreciation for Sheridan Company will be $13,710.

What is the depreciation charges?

= (Cost - Salvage Value) / Useful life

= ($49700 - $4000)/10

= $4570

The Accumulated Depreciation indicates that 4 years have past by (18280/4570)

Now, the remaining 6 years will be reduced to 2 after revision.

Now working

Remaining Cost = ($49700 - $18280)

Remaining Cost = $31420  

Salvage Value = 4000

Revised Remaining Useful Life  = 2

What is the Revised Calculated Depreciation Annual?

= ($31420 - $4000) / 2

= $13,710

Therefore, the revised annual depreciation for Sheridan Company will be $13,710.

Read more about annual depreciation

brainly.com/question/24194507

What could be a good option available to you if you are behind on loan payments?

Answers

Answer:

The financial institution might offer the person to pay a little amount now and pay the remaining amount after the next pay day.

Explanation:

Loan amount is the amount which could have a effect on the aggregate amount the person eventually pay on the loan.

In short, the loan payment comprise of the interest payment, which is considered as an expense. The principal payment, that reduces principal balance of the loan.

The best option which is available for the person who is behind the loan payments that the financial institution may offer the person to pay a little amount of the loan and the remaining amount to pay after the next pay day.

Final answer:

When behind on loan payments, contact your lender to discuss possible payment plans or modifications. You can also seek advice from a credit counselor. In extreme situations, debt consolidation or bankruptcy might be considered.

Explanation:

If you find yourself behind on loan payments, there are several options available to you. The first step should be to contact your lender. Many lenders have hardship programs in place and are willing to work with borrowers who are experiencing financial difficulties, and can provide payment plans, loan modifications, or even temporarily reduced payments. Secondly, consider seeking guidance from a credit counselor. They can provide strategies and resources to help manage your debt. Lastly, as a last resort, you could consider debt consolidation or bankruptcy – both severe measures with long-term consequences, but may provide temporary relief.

Learn more about Managing Loan Payments here:

https://brainly.com/question/34897239

#SPJ12

What does a company's customer service department do?
A Promote the company to new groups of potential customers.
B. Interact with customers after they have purchased the product.
C. Receive payments from customers and handle the company's money.
Handle employee-related procedures
Please select the best answer from the choices provided
Oo oo

Answers

Answer:

B. Interact with customers after they have purchased the product.

Explanation:

It is the duty of the Customer services department to cater to the all customer feedbacks and requirements.

The retention of the customers and attracting new customers depends on the quality of the service provided by the customer handling.

Other Questions
How many times can 27 go into 224 With your typical convenience store customer, there is a 0.23 probability of buying gasoline. The probability of buying groceries is 0.76 and the conditional probability of buying groceries given that they buy gasoline is 0.85. a. Find the probability that a typical customer buys both gasoline and groceries. b. Find the probability that a typical customer buys gasoline or groceries. c. Find the conditional probability of buying gasoline given that the customer buys groceries. d. Find the conditional probability of buying groceries given that the customer did not buy gasoline. e. Are these two events (groceries, gasoline) mutually exclusive? f. Are these two events independent? Advances in data storage techniques and the rapidly declining costs of data storage threaten ________. A. organizational procedures B. individual privacy C. growth in mobile devices D. network advances E. analytical procedures What caused the people of Poker Flat to be after somebody? Maddy made $22.50 for babysitting for 5 hours for her aunt. Maddy was paid $21.00 for 3.5 hours of babysitting for her neighbor. How much more per hour does Maddys neighbor pay than her aunt? These activities change heart rate by changing the balance of parasympathetic and sympathetic stimulation of the heart. Sort each of the activities according to whether it decreases or increases heart rate. Drag the appropriate items to their respective bins. Find the x- and y-intercepts of 3/5x + 1/3y = 1/15 Nara multiplied two whole numbers together to equal a product of 90.Then she accidentally spilled ketchup on her work.Select the three responses below that could be one of the numbers Nara multiplied. can someone help me one the questions I have not answered? In a triangle, one angle measures 68 and anotherangle measures 38. What is the measure of the thirdangle? The Hahns have a right to exercise their religion. Does this right transfer to any corporations they own? Soft drink manufacturers face (a) ________. A) High threat of substitutes.B) High bargaining power of suppliers.C) High threat of new entrants.D) Low levels of rivalry.E) High bargaining power of buyers. Which of the following is an example of the present progressive tense? A. You have been running around the bases. B. You are running around the bases. C. You had ran around all the bases. D. You were running around the bases. Suppose h(t)= -0.2 + 2t models the height, in feet, of a ball that is kicked into the air where t is given as time in seconds BRAINLIEST !! Pls at least take a look , answer all or don't answer A juggler throws a bowling pin straight up with an initial speed of 8.20 m/s. How much time elapses until the bowling pin returns to the jugglers hand? The area of a parking lot is calculated to be 5,474 ft2 with an estimated standard deviation of 2 ft2 . What is the Maximum Anticipated Error? There is a 90% chance that the error range will be what? If the mass of an object is 44 kilograms and its velocity is 10 meters per second east, how much Kinetic Energy does it have? According to Grusec & Davidov (2010), a(n) _____ focuses on parenting behaviors rather than general styles to better understand the socialization process. The Equal Credit Opportunity Act prohibits which of the following? a. Basing the credit decision on unemployment. b. Basing the credit decision on the fact that the applicant was in prison for a felony three years ago. c. Basing the credit decision on the receipt of public assistance income. d. Basing the credit decision on a bankruptcy of five years ago.