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:

Spot Rate

The existing market cost at which a certain asset is offered for buy or sell, ensuring immediate delivery.

Absolute Purchasing Power Parity

An economic theory that states the price of a good in one country should equal the price of the same good in another country when exchanged at the current exchange rate.

Halifax

A city in the Canadian province of Nova Scotia, often not directly related to financial terms unless specifying a financial institution or geographic economic analysis.

Currency

Currency refers to money in any form when in use or circulation as a medium of exchange, especially circulating banknotes and coins.