Which of the Following Is a Plausible Reason That Restaurants

question 37

Multiple Choice

Which of the following is a plausible reason that restaurants offer "Senior Citizen Discounts"?

• A)Senior citizens tend to have relatively more elastic demands for restaurant meals than other consumer groups.
• B)Senior citizens tend to have relatively more inelastic demands for restaurant meals. than other consumer groups.
• C)Senior citizens are not very sensitive to changes in prices.
• D)Senior citizens are easily fooled by "come-ons" and are therefore frequently victims of price discrimination.

---

Definitions:

Budgeted Net Income

An estimate of a company's net income for a future period, calculated by subtracting all expected expenses from expected revenues.

Cash Receipts

The total amount of cash collected by a business during a period from its various sources.

Credit Sales

Transactions in which goods or services are provided to a customer with an agreement to pay at a later date.

Budgeted Sales

The sales numbers a company projects to achieve in a future period, usually part of financial planning and budgeting.