When the price of movie tickets in a certain town was reduced, the movie-theaters' revenues did not change. This suggests that the demand for movie tickets in that town has a price-elasticity coefficient of:
A. 1.0
B. Greater than 1
C. 0.5
D. Zero
A. 1.0
You might also like to view...
Why might a young, healthy person choose not to buy health insurance?
What will be an ideal response?
Which of the following will decrease the price needed to break even?
a. A decrease in overall fixed but avoidable costs b. A decrease in the marginal costs c. An increase in sunk costs d. Both A&B
Which of the following calculates the cost of purchasing a specific bundle of goods and services in each country and uses this measure to convert the incomes of different countries to a common currency so they may be more accurately compared?
a. the consumer price parity (CPP) method b. the purchasing power parity (PPP) method c. the GDP deflator exchange (GDPDE) method d. the inflation conversion factor (ICF) method
Which of the following is the best example of a fixed cost for a business?
a. the insurance payment for the protection of a building owned by the firm b. shipping charges for the delivery of products c. managerial salaries paid d. the total of medical insurance premiums on the firm's employees