Anew york city daily newspaper called “manhattan today” charges an annual subscription fee of $162. customers prepay their subscriptions and receive 240 issues over the year. to attract more subscribers, the company offered new subscribers the ability to pay $160 for an annual subscription that also would include a coupon to receive a 40% discount on a one-hour ride through central park in a horse-drawn carriage. the list price of a carriage ride is $150 per hour. the company estimates that approximately 30% of the coupons will be redeemed.
how much revenue should manhattan today recognize upon receipt of the $130 subscription price?

Brian has just finished college. he wants to set up a small business to make and sell fireworks. he registers his company and acquires a license from the government. he finds that most of his competitors are selling fireworks at an extremely low price. he would like to make more money, so he decides to innovate and develop better fireworks. he sells his fireworks at a higher price, and they are a huge hit with the customers. after a few years, he earns enough profit to set up a bigger fireworks factory that complies with the government’s health and safety regulations. he even starts exporting fireworks overseas. which type of economy does this scenario describe?