Bubba's Hula Shack Bar and Bistro Has Begun Giving Customers

question 146

Multiple Choice

Bubba's Hula Shack bar and bistro has begun giving customers who can show proof that they arrived at the establishment by public transportation a 10 percent discount on their total bill.All else equal, customers who arrive by public transportation to take advantage of Bubba's Hula Shack discount have a ________ for the services of the establishment than customers who drive to the establishment.

• A)higher price elasticity of demand
• B)lower price elasticity of demand
• C)higher price elasticity of supply
• D)lower price elasticity of supply

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Definitions:

NPV

Net Present Value; a calculation used to determine the value of an investment by assessing the present value of its cash flows minus the initial investment.

Cash Flow

The combined total of money coming in and going out of an enterprise, significantly affecting its financial fluidity.

Mutually Exclusive

This term describes scenarios or choices where the selection of one option precludes the selection of any other option, typically in decision making or project selection.

Cost Of Capital

The rate of return required by a capital provider—debt or equity—for investing in a company.