If a Decrease in the Price of Theater Tickets Increases

question 196

Multiple Choice

If a decrease in the price of theater tickets increases the total revenue earned by the theater, this is evidence that demand is:

• A) price elastic.
• B) price inelastic.
• C) unitary elastic.
• D) perfectly inelastic.

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Definitions:

Gasoline

A highly flammable liquid derived from petroleum, used primarily as fuel in internal combustion engines.

Quantity Demanded

Quantity demanded is the total amount of a good or service that consumers are willing and able to purchase at a given price over a specified period.

Demand Schedule

A tabular representation showing the quantity of a good that consumers are willing and able to purchase at different prices, holding other factors constant.

Excise Tax

A tax directly levied on certain goods, services, or activities, often included in the price of the product.