The Demand for Movies Is Unit Elastic If

question 118

Multiple Choice

The demand for movies is unit elastic if

• A) a 5 percent decrease in the price leads to an infinite increase in the quantity demanded.
• B) a 5 percent increase in the price leads to a 5 percent decrease in the quantity demanded.
• C) any increase in the price leads to a 1 percent decrease in the quantity demanded.
• D) a 5 percent increase in the price leads to a 5 percent increase in total revenue.

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Definitions:

Document

A written, printed, or electronic record that provides evidence of a transaction or commitment.

Check

A written, dated, and signed instrument that contains an unconditional order directing a bank to pay a definite sum of money to a payee.

Internal Document

Documents used within an organization, such as memos, reports, and internal manuals, that are not shared with external parties.

Cash Payments

Monetary transactions made by an entity to settle obligations or purchase goods and services.