Figure 11-5
In Figure 11-5 are the cost and revenue curves of a monopolist in the theater market, Crown Theater, which is the only movie theater in the city. At its profit-maximizing quantity of tickets sold, movie goers will buy ____ tickets.
a.
60
b.
100
c.
120
d.
140
b
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If, for a given percentage increase in price, quantity demanded falls by a proportionately smaller percentage, then demand is
A) relatively elastic. B) relatively inelastic. C) perfectly elastic. D) unit elastic.
If, in retaliation for "unfair" trade practices, Congress imposes a 30 percent tariff on Japanese DVD recorders, but at the same time, U.S. demand for Japanese goods increases, then, in the long run, ________, everything else held constant
A) the Japanese yen should appreciate relative to the U.S. dollar B) the Japanese yen should depreciate relative to the U.S. dollar C) there is no effect on the Japanese yen relative to the U.S. dollar D) the Japanese yen could appreciate, depreciate or remain constant relative to the U.S. dollar
Scarcity limits the volume of goods that an economic system can produce, but does not limit the production of services
a. True b. False Indicate whether the statement is true or false
When demand is elastic,
A. the percentage change in price is greater than the percentage change in quantity demanded. B. price increases raise total revenue. C. the buyer is sensitive to changes in price. D. the elasticity coefficient is greater than zero, but less than one.