Author Question: A movie theatre raises its admission prices by 10, which results in a 10 reduction in the quantity ... (Read 60 times)

imanialler · **on:** Jun 30, 2018

A movie theatre raises its admission prices by 10, which results in a 10 reduction in the quantity of tickets demanded. The demand curve facing this firm is:
a. elastic.
b. inelastic.
c. unit elastic.
d. unit inelastic.

Question 2

A combination of Fed purchases of government securities and an increase in reserve requirements would:
a. increase the money supply.
b. decrease the money supply.
c. leave the money supply unchanged.
d. have an indeterminate effect on the money supply.