When the manager of a local movie theater raises the price of movie tickets from $7.50 to $8.50, his total revenue falls. This means that:
a. the demand for movie tickets is highly elastic.
b. the supply of movie tickets is perfectly elastic.
c. the supply of movie tickets is unit-elastic.
d. the demand for movie tickets is inelastic.
e. the supply of movie tickets is inelastic.
a
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Which scenario will most likely happen as employers and employees increase their usage of the Internet in the job search process?
a. Job-related information will become more costly and cyclical unemployment will go up. b. Job-related information will become less costly and frictional unemployment will go up. c. Job-related information will become more costly and structural unemployment will go down. d. Job-related information will become less costly and frictional unemployment will go down.
When economies of scale are important, imposing competition by splitting a monopolistic firm into many rival units will
a. lead to an increase in the per-unit cost of production in the industry. b. not affect per-unit costs but will affect demand conditions. c. generally increase the social efficiency of production. d. cause the industry demand curve to increase (shift to the right).