Theatres charge lower prices for a matinee and usually don't accept coupons for the night showing of movies because
A) consumers that attend the matinee have a higher price elasticity of demand.
B) consumers that attend the night show have a lower price elasticity of demand.
C) it increases profits compared to charging a single price.
D) All of the above.
D
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The principal cause of falling unemployment is ________
A) an increase in net entrants to the labor force B) a decrease in net entrants to the labor force C) an increase in the number of new jobs created D) a decrease in the number of jobs lost
According to the classical model, an increase in aggregate demand would
A) lead the economy to recession. B) lead the economy to a deflationary cycle. C) cause an adjustment to a higher price level. D) raise real Gross Domestic Product (GDP) but leave the price level unchanged.