A Broadway Play Company Can Only Charge One Price for Tickets

question 105

Multiple Choice

A Broadway play company can only charge one price for tickets to a given performance of its play. The company manager notices that the company earns greater total revenue when they charge a higher ticket price and its theater is three-quarters full than when they charge a lower ticket price and the theater is completely full. It follows that demand for this play is

• A)elastic.
• B)unit elastic.
• C)perfectly inelastic.
• D)perfectly elastic.
• E)inelastic.

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Definitions:

Unemployment Taxes

Taxes imposed on employers by the government, intended to fund unemployment benefits for workers who have lost their jobs.

FUTA Tax Rate

The FUTA (Federal Unemployment Tax Act) Tax Rate is the percentage of taxable income employers are required to pay to fund state workforce agencies.

SUTA Tax Rate

The state unemployment tax rate, which employers must pay to fund the state's unemployment insurance program.

Unemployment Taxes

Taxes paid by employers to fund unemployment insurance programs, varying by state and based on the amount of wages paid to employees.