It has been suggested that if NHL hockey teams would lower ticket prices, they could increase revenue from ticket sales. Which of the following assumptions forms the basis for this suggestion?
a. Both d and e are correct.
b. All of the following are correct.
c. Demand for NHL hockey is income inelastic.
d. Demand for NHL hockey is price elastic.
e. There are many substitutes for NHL hockey.
A
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An economy has two workers, Jen and Rich. Everyday they work, Jen can produce 2 TVs or 10 radios, and Rich can produce 4 TVs or 12 radios. What is the opportunity cost for Rich to produce one TV?
A. 12 radios B. 3 radios C. 1/5 radio D. 1/3 radio
A mathematical formula for the deficit would be
A. C + I + G ? transfers + taxes. B. C + I + G + transfers – taxes. C. I + G + transfers – taxes. D. G + transfers – taxes.
In perfect competition, which is NOT true?
A. Both concentration ratios and Rothschild indexes tend to be close to zero. B. At least one firm has a perceptible impact on the market price. C. There are a large number of firms, and each is small relative to the entire market. D. Firms produce homogeneous goods.
Last year the price of a dozen eggs was $2, and this year the price is $2.60. Which of the following does NOT express this price change accurately?
A. The price increased 30 percent. B. The price increased by 60 cents. C. If this year is the base year, the index number for last year would be 130. D. If last year was the base year, the index number for this year would be 130.