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Author Question: If a decrease in the price of movie tickets increases the total revenue of movie theaters, this is ... (Read 91 times)

frankwu

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on: Jun 30, 2018
If a decrease in the price of movie tickets increases the total revenue of movie theaters, this is evidence that demand is:
 a. price elastic.
  b. price inelastic.
  c. unit elastic with respect to price.
  d. perfectly inelastic.

Question 2

If demand is price elastic, a decrease in price causes:
 a. an increase in total revenue.
  b. a decrease in total revenue.
  c. no change in total revenue.
  d. an increase in quantity, but anything can happen to revenue.


ryrychapman11

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Reply #1 on: Jun 30, 2018
Answer to Question 1

a

Answer to Question 2

a


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