When the price of a movie ticket increases from $5 to $7, the quantity of tickets demanded decreases from 600 to 400 a day. What is the price elasticity of demand for movie tickets?
A) 0.83
B) 1.20
C) 1.00
D) 2.32
B
You might also like to view...
The real interest rate is 4 percent a year. When the inflation rate is zero, the nominal interest rate is approximately ________ percent a year; and when the inflation rate is 2 percent a year, the nominal interest rate is approximately ________
percent a year. A) 0; 2 B) 4; 6 C) 6; 8 D) 6; 4
Under monopsony, marginal factor cost
A) is downward sloping. B) is less than the wage rate, although it increases as more workers are hired. C) equals the wage rate. D) is greater than the going wage rate.
For a firm operating in a perfectly competitive industry, marginal revenue and average revenue are equal
a. True b. False Indicate whether the statement is true or false
________: the sum of all individual categories of production costs that do vary with the level of production
Fill in the blank(s) with correct word