A movie theater raises ticket prices from $12 to $14 in order to raise revenues. The theater's management is assuming the absolute value of the price elasticity of demand for tickets is
A. equal to 1.
B. less than 1.
C. infinity.
D. greater than 1.
Answer: B
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When economies of scale are present, the LRAC curve touches each short-run ATC curve
A) to the left of the ATC curve's minimum point. B) to the right of the ATC curve's minimum point. C) at the ATC curve's minimum point. D) at no points.
What does it mean if the purchasing power in 1950 was 4.15 relative to the 1982 base year?
a. It took $4.15 in 1950 to buy what $1 bought in 1982. b. The average price level in 1982 was five times as high as in 1950. c. $4.15 in 1950 had the same nominal money value as $1 in 1982. d. It took $4.15 in 1982 to buy what $1 bought in 1950. e. Nominal prices have increased by more than 400 percent between 1950 and 1982, but the real value of money has not changed.
Economic growth in any country is reflected by an increase in real GDP
a. True b. False Indicate whether the statement is true or false
Which of the following is most likely to be a monopoly?
A) Ford, an auto manufacturer B) Verizon, a wireless service provider C) The Washington Post newspaper D) a public water utility