Sony Is Considering a 10 Percent Price Reduction on Its

question 281

Multiple Choice

Sony is considering a 10 percent price reduction on its HD televisions. If the price-elasticity coefficient for the sets in this price range is 0.75, then the price cut will cause

• A)sales quantity to increase and revenues to also increase.
• B)sales quantity to increase but revenues to decrease.
• C)sales quantity to decrease and revenues to also decrease.
• D)sales quantity to decrease but revenues to increase.

Determine the concept of buying bonds at a premium or a discount.

Calculate the premium and discount price of bonds.

Understand the concept of accrued interest in bond transactions.

Compute savings from issuing new bonds at a lower interest rate after calling old bonds.