When the price of a movie ticket increases from $5 to $7, the quantity of tickets demanded decreases from 600 to 400 a day. What is the price elasticity of demand for movie tickets?

The cost of capital to a firm is equal to

A) a risk-free rate plus an equity premium. B) a risk-free interest rate. C) an equity premium charged by lenders. D) the Treasury bill rate minus an equity premium.

In the mid-1970s, changes in oil prices greatly affected U.S. inflation. When oil prices rose, the U.S. would experience:

A. Cost-push inflation and rising output B. Demand-pull inflation and rising output C. Cost-push inflation and falling output D. Demand-pull inflation and falling output