The above figure shows the demand curve for movie rentals from Redbox. Which of the following is TRUE?
A) Consumer expenditure on movie rentals will always increase whenever Redbox lowers its price.
B) Redbox will receive more total revenue if it charges $4.00 per movie rental rather than $3.00.
C) The price elasticity of demand for movie rentals falls as Redbox raises its price.
D) The demand for movie rentals is more price inelastic at $1.00 than it is at $1.50.
D
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Opportunity costs differ among nations primarily because
a. nations employ different currencies. b. nations have different amounts of land, labor skills, capital, and technology. c. nations have different religious, political, and economic institutions. d. the work-leisure preferences of people vary considerably from one nation to another.
Suppose that Frank is considering giving Mike eight paperback books in exchange for 2 CDs. Explain the conditions under which this trade would be mutually beneficial. Also explain the conditions under which Frank and Mike won't make the trade.
What will be an ideal response?
Two major exports for the United States are
A) clothing and office machines. B) soybeans and scientific instruments. C) footwear and fish. D) coffee and diamonds. E) none of the above
While waiting in line to buy two tacos at 75 cents each and a medium drink for 80 cents, Jordan notices that the restaurant has a value meal containing three tacos and a medium drink all for $2.50. For Jordan, the marginal cost of purchasing the third taco would be
a. zero. b. 20 cents. c. 75 cents. d. 80 cents.