If a $1 increase in price leads to a $1 decrease in total revenue, then demand must be elastic

Suppose the price of movies seen at a theater rises from $12 per couple to $20 per couple. The theater manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons

What is the arc price elasticity of demand for movies? A) 0.5 B) 0.8 C) 1.0 D) 1.2

When taxes paid by a check are deposited in tax and loan accounts,

A) bank reserves and the money supply are unaffected. B) bank reserves fall but the money supply is unaffected. C) bank reserves are unaffected but the money supply falls. D) bank reserves and the money supply fall.