When the Price of a Movie Ticket Increases from $5

question 53

Multiple Choice

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?

• A) 0.83
• B) 1.20
• C) 1.00
• D) 2.32

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Definitions:

Distress

Negative stress resulting from adverse circumstances or challenges leading to strain or discomfort.

Disintegration

The process of breaking down or dissolving, which in psychological terms can refer to the disorganization or fragmentation of thought processes.

Foresee

The ability to anticipate or predict future events or outcomes based on current knowledge or insights.

Disruption

An interruption or disturbance that challenges the normal course or functioning of something, often leading to innovative solutions or changes.