When the price of a video rental was $2.00, ticket sales at the local movie theatre averaged 180 admissions per night. Then the video store reduced the price of a video rental to $1, and the theatre manager reported that ticket sales had fallen to 126
per night. What is the approximate value of the cross price elasticity of demand between video rentals and theatre tickets?
A) -0.53
B) +0.30
C) +0.53
D) +1.67
Answer: C
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GDP calculations tend to exclude all of the following EXCEPT
A) environmental quality. B) salaries paid to government employees. C) illegal transactions. D) work that people do for themselves in their own homes.
All of the following statements about the United States are true EXCEPT:
A) The largest imports are services like royalties, license fees, and financial services, and the largest exports are goods like crude oil, automobiles, and clothing. B) The United States is the world's largest international trader. C) The United States imports more than it exports. D) Services account for a larger portion of U.S. exports than U.S. imports. E) Imports are a larger percentage of total expenditure than exports are a percentage of total production.
How does the creation of a successful movie influence what, how, and for whom goods and services are produced?
What will be an ideal response?
An example of a market failure is
A) a firm is dumping toxic waste that is making people sick. B) when not everyone who wants to see a major league football game can. C) when there is an increase in demand and a shortage develops. D) unemployment.