If movie theatres decided to increase the price for the movie tickets, holding other factors constant, what would happen to the demand for popcorn in the theatres?
a. the demand for popcorn would shift to the left because popcorn and movies are substitute goods.
b. the demand for popcorn would shift to the left because popcorn and movies are complementary goods.
c. the demand for popcorn would shift to the right because popcorn and movies are substitute goods.
d. the demand for popcorn would shift to the right because popcorn and movies are complementary goods.
Question 2
You can either invest in project A or B. Project A could have a value of 150 with a probability of 0.1 or a value of 75 with probability 0.9 . Project B could have a value of 120 with probability 0.2 or a value of 75 with a probability of 0.8 . Which project should you invest in?
a. Project A
b. Project B
c. Neither of the projects
d. You cannot tell from the information presented
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