If the Price of a Movie Ticket Increases by 4

question 512

Multiple Choice

If the price of a movie ticket increases by 4 percent and the quantity of movies demanded falls by 2 percent, the price elasticity of demand is

• A) 2.0.
• B) 4.0.
• C) 0.5.
• D) some amount that cannot be determined without more information.

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Definitions:

Free Ends

The extremities or terminals of a linear structure, such as a piece of DNA or a thread, that are not attached or bonded to anything else.

Hydrophobic

Characteristic of molecules that repel water; substances that are not easily soluble in water.

Hydrophilic

A term describing molecules or substances that have an affinity for water, making them capable of dissolving in or being wetted by water.

Fatty Acid

A lipid that is an organic acid containing a long hydrocarbon chain, with no double bonds (saturated fatty acid), one double bond (monounsaturated fatty acid), or two or more double bonds (polyunsaturated fatty acid); components of triacylglycerols and phospholipids, as well as monoacylglycerols and diacylglycerols.