The Demand and Supply of Movie Tickets Are Given by Q^D

question 47

Multiple Choice

The demand and supply of movie tickets are given by Q^D = 30 - 3P and Q^S = 4P - 19, where P is the price per ticket and Q is in thousands of tickets. If the government places a $1 tax on each ticket, the prices that consumers pay with and without the tax are _____ and _____, respectively.

• A) $8; $7
• B) $7.57; $7
• C) $7.50; $6.80
• D) $4.30; $3.80

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Definitions:

Psychological Egoism

The theory that all human actions are motivated by self-interest, suggesting that altruistic acts are ultimately done for one's own benefit.

Utilitarianism

An ethical theory that posits the best action is the one that maximizes utility, typically defined as that which produces the greatest well-being of the greatest number of people.

Duty-Based

An ethical framework that focuses on the duties or obligations one has in order to act ethically, often associated with Immanuel Kant's deontological ethics.

Care Ethics

An approach to moral theory that emphasizes interpersonal relationships and urges the reliance on virtues related to caring as a basis for assessing how to act in specific cases. This approach has been developed and defended by feminist theorists and is sometimes called “feminist ethics,” though in principle one can defend this approach without relating it to women or to feminist concerns.