A movie theatre raises ticket prices from $8 to $10 in order to raise revenues. The theatre's management is assuming the absolute value of the price elasticity of demand for tickets is
A) less than 1.
B) greater than 1.
C) equal to 1.
D) infinity.
A
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Russia and Qatar made the first serious moves in October 2008 toward forming an OPEC-style cartel for natural gas. The two strategies these countries face are to comply with the cartel agreement or to cheat on the cartel agreement
If both countries comply, the economic profit for each will be $140 million. If one country cheats, that country earns $200 million in economic profit and the other country will have an economic loss of $10 million. If all countries cheat, they break even. What is the outcome of this game if it is only played once? A) Each country will comply with the cartel agreement. B) Two countries will comply and one will cheat, but we cannot predict which one will cheat. C) One country will comply and two will cheat, but we cannot predict which ones will cheat. D) None of the countries will comply with the cartel agreement.
Influence cost is a type of _____ incurred while filling positions that have similar responsibilities but carry different pay
a. deadweight loss b. opportunity cost c. externality d. social cost
Normative statements describe how the world is, while positive statements prescribe how the world should be
a. True b. False Indicate whether the statement is true or false
Related to the Economics in Practice on page 666: Trade ________ comparative advantage of countries and ________ the efficiency of firms.
A. exploits; reduces B. inhibits; reduces C. inhibits; improves D. exploits; improves