The Management of Local Cinema Has Estimated the Monthly Demand

question 66

Multiple Choice

The management of Local Cinema has estimated the monthly demand for tickets to be lnQ = 22,328 - 0.41 lnP + 0.5 lnM - 0.33 lnA + 100 lnP_vcr, where Q = quantity of tickets demanded, P = price per ticket, M = income, A = advertising outlay, and P_vcr = price of a VCR tape rental.It is known that P = $5.50, M = $9,000, A = $900, and P_vcr = $3.00.Based on the information given, which of the following statements is false?

• A)Advertising decreases the demand for movie tickets.
• B)Movies are normal goods.
• C)Movies are complements for VCR tapes.
• D)The advertising elasticity of demand for movie tickets is -0.33.

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Definitions:

Ideology

A system of ideas, beliefs, and values that shapes the way individuals perceive and interact with the world.

Unequal Gender Roles

The societal and cultural expectations that assign different roles, responsibilities, and statuses to individuals based on their gender, often privileging one gender over others.

Specific Identification Method

An inventory costing method that tracks the actual cost of each specific item in inventory until it is sold.

Equity Method

An accounting technique used for recording investments in associate companies where the investment is initially recognized at cost and adjusted thereafter for the post-acquisition change in the investor’s share of the investee’s net assets.