Suppose We Observe That Movie Theatre Prices Are Less During

question 101

Multiple Choice

Suppose we observe that movie theatre prices are less during the daytime than in the evening.If the supply of movies does not change between daytime and evening,then the most likely explanation for this difference in price is

• A)the evening demand curve is to the left of the daytime demand curve.
• B)the evening demand curve is to the right of the daytime demand curve.
• C)the evening supply curve is to the left of the daytime supply curve.
• D)the evening supply curve is to the right of the daytime supply curve.

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Definitions:

Marginal Product of Labor

The additional output produced as a result of adding one more unit of labor, holding all other inputs constant.

Marginal Cost

The cost of producing one additional unit of a product.

Additional Unit

The next unit of production or consumption, considered in analysis of changes in benefit or cost from increasing quantity.

Fixed Cost

Business expenses that remain constant regardless of the level of production or sales activity, such as rent or salaries.