The Management of Local Cinema Has Estimated the Monthly Demand

question 28

Multiple Choice

The management of Local Cinema has estimated the monthly demand for tickets to be ln Q = 22,328 − 0.41 ln P + 0.5 ln M − 0.33 ln A + 100 ln P_DVD,where Q = quantity of tickets demanded,P = price per ticket,M = income,A = advertising outlay,and P_DVD = price of a DVD 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 DVD rentals.
• D) The advertising elasticity of demand for movie tickets is −0.33.

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Definitions:

Ting-Toomey

A scholar known for her work on cross-cultural communication, particularly the concept of face-negotiation theory.

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The effectiveness and outcomes of a leader's actions in guiding and influencing a group toward achieving its goals.