A movie theater charges ticket prices of $4.50 during weekday afternoon matinee hours and $8.50 during evening and weekend hours. Economists explain the ticket price difference by the fact that the demand for movie tickets during the weekday afternoon matinee hours is ________ but during the evening and weekend hours it is ________.
A. perfectly elastic; perfectly inelastic
B. more inelastic; more elastic
C. unit elastic; relatively inelastic
D. more elastic; more inelastic
Answer: D
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Money demand is given by Md/P = 1000 + .2Y - 1000i. Given that P = 200, Y = 2000, and i = .10, velocity is equal to
A) 0.65. B) 0.75. C) 1.33. D) 1.54.
Discuss the likely impact of each of the following on the unemployment rate and on the natural rate of unemployment.:
a. The length of time workers are eligible to receive unemployment benefits is extended by 26 weeks. b. The government passes a law which increases the age of eligibility to collect Social Security benefits. c. The government decides to increase access to Social Security disability benefits.
If a firm decides to stop its sales agents from pricing too aggressively to make sales by requiring the agent to obtain permission to reduce price below a specific threshold, and the manager has all the relevant information transferred to him by the firm, the solution would
a. Work b. Not work c. Not work in all circumstances d. None of the above
Social Security and Medicare, programs that benefit the elderly primarily, make up the greatest share of federal redistribution programs since 1962
a. True b. False