Exhibit 5-6 Demand Curve for Concert Tickets

question 16

Multiple Choice

Exhibit 5-6 Demand curve for concert tickets
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-In Exhibit 5-6, if promoters lower their ticket price form $30 to $20, then:

• A) they will receive less money from their ticket sales.
• B) people will continue to buy the same number of tickets.
• C) customers will spend less total money on concert tickets.
• D) both ticket sales and total revenue will rise.

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Definitions:

Balance On Capital Account

A measurement of the financial transactions that cause a change in the ownership of assets between residents and non-residents.

Current Account

A component of a country's balance of payments, relating to the trade balance, net primary income or factor income (earnings on foreign investments minus payments made to foreign investors) and net cash transfers, that has direct impact on currency exchange rates.

Foreign Exchange Market

A market in which currencies of different nations are bought and sold.

Exchange Rate

The amount one currency is worth when exchanged for another.