If at a Price of $8, the Quantity of Movie

question 3

Multiple Choice

If at a price of $8, the quantity of movie tickets bought will be 3300 per day, and at $12, the ticket quantity bought will be 2700 per day, then the price elasticity of demand for movie tickets is approximately:

• A)0.4
• B)0.5
• C)0.7
• D)2.0
• E)2.5

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Definitions:

Trial Balance

A bookkeeping report that lists the balances of all ledgers' accounts in two columns, debit and credit, to ensure that entries in a company’s bookkeeping system are mathematically correct.

Ledger

A comprehensive collection of all the accounts of a company, showing transactions and resulting balances.

Journal

A book or digital record used in accounting to record each financial transaction as it occurs in chronological order.

Ledger

A book or computer file for recording and totaling economic transactions measured in terms of a monetary unit of account by account type.