If a decrease in the price of movie tickets increases the total revenue of movie theaters, this is evidence that demand is:
a. price elastic.
b. price inelastic.
c. unit elastic with respect to price.
d. perfectly inelastic.
a
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Japanese economists worry that changes in the U.S. inflation rate have too large an effect on the Japanese economy. What type of exchange-rate regime should Japan have if it does not want U.S. inflation changes to impact the Japanese internal economy? Explain, using relative purchasing power parity (PPP) in your explanation.
What will be an ideal response?
All of the following are sources of funding for capital goods in developing countries EXCEPT
A. portfolio investment. B. loans from banks. C. taxation. D. foreign direct investment.
In Figure 2.1, Box 3 would be labeled
A. S for supply. B. D for demand. C. P for price. D. P* for equilibrium price.
Purchasing a season pass to the local symphony
A) is an example of first degree price discrimination. B) is an example of second degree price discrimination. C) is an example of third degree price discrimination. D) All of the above.