A movie theater is a price-discriminating monopolist and charges a higher ticket price for late-evening showings. From this we know that:
A. late-evening moviegoers have less elastic demands than daytime or early-evening moviegoers.
B. late-evening moviegoers have perfectly inelastic demand schedules.
C. late-evening moviegoers have more elastic demands than daytime or early-evening moviegoers.
D. daytime and early-evening moviegoers have perfectly elastic demands.
Answer: A
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In a supply and demand figure, the equilibrium price and quantity are found at the
A) point where quantity supplied equals quantity demanded. B) horizontal intercept of the demand curve. C) vertical intercept of the supply curve. D) horizontal intercept of the supply and the demand curves.
Under perfect competition, regarding short-run profit, a firm may find itself losing money. This is true because:
a. the firm was unable to pick the output that maximized profit b. the market conditions make the highest possible profit a negative number c. the demand for its product is weak or its costs are high d. both b and c
Let supply be given by P = 5Q and demand by P = 19 - 2Q. Suppose we now place a tax of 5 per unit of output on the seller. The new equilibrium price is:
A. 10 B. 7 C. 15 D. 2
Electric car manufacturers want to sell more electric cars at a higher price. Which of the following events would have this effect?
A) technological advancement in the production of electric car batteries B) an increase in the number of manufacturers of electric cars C) a decrease in the price of lithium, which is used in the electric car batteries D) an increase in the price of gasoline