Redbox Rents DVDs for $1 Per Day Via Self-Service Kiosks

question 250

Multiple Choice

Redbox rents DVDs for $1 per day via self-service kiosks located across the United States. In 2007, each kiosk averaged about 50 rentals per day. Suppose Redbox increases their daily price to $1.50. What is the price elasticity of demand if rentals decrease by 20 per day?

• A) 1.25
• B) 1.33
• C) 1
• D) 0.8

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Definitions:

Sackville Waterfowl Park

A nature reserve located in Sackville, New Brunswick, Canada, known for its diverse bird species and natural habitats.

New Brunswick

A maritime province in eastern Canada, known for its forested landscape, rivers, and coastal regions along the Atlantic Ocean.

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A province located on Canada’s Atlantic coast, known for its maritime heritage, natural beauty, and cultural diversity.

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