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:

N-Propylamine

An organic compound with the formula C3H7NH2, representing an amine where an amino group is attached to a propyl chain.

1-Bromopropane

An organobromine compound with the formula CH3CH2CH2Br, used as a solvent and an intermediate in organic synthesis.

Propan-1-Amine

An organic compound with the formula C3H9N, consisting of a propyl group attached to an amine functional group.

Nitrosonium Ion

A positively charged ion with the formula NO+, known for its role in organic nitrogen compound synthesis.