If the University Chamber Music Society decides to raise ticket prices to provide more funds to finance concerts, the Society is assuming that the demand for tickets is:
A. parallel to the horizontal axis.
B. shifting to the left.
C. inelastic.
D. elastic.
Answer: C
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Many developing countries were once under colonial rule, a system of government that:?
An advantage of imposing a tax on the producer that generates pollution is that
A) the government can keep tabs on exactly what is produced in an industry. B) it forces the polluting producer to internalize the external cost of the pollution. C) it will eliminate pollution. D) a producer can pass the cost of the pollution to consumers.
What is an advantage of using forward contracts instead of options to hedge against exchange-rate risk?
What will be an ideal response?
We say that a good has elastic demand whenever the absolute value of the price elasticity of demand is greater than 1. A 1 percent change in price therefore causes
A) exactly a 1 percent change in the quantity demanded. B) a change of less than 1 percent in the quantity demanded. C) a greater than 1 percent change in quantity demanded. D) a change that cannot be determined based on 1 percent.