If the Absolute Price Elasticity of Demand for Concert Tickets

question 395

Multiple Choice

If the absolute price elasticity of demand for concert tickets is 0.75, an increase in ticket prices will

• A) increase total revenue.
• B) decrease total revenue.
• C) not change the elasticity of demand.
• D) not change total revenue.

Identify how changes in consumer behavior and economic policies influence saving and investment decisions.

Distinguish between movements along and shifts of the supply and demand curves for loanable funds.

Calculate real interest rates from nominal interest rates and inflation.

Understand the implications of changes in mortgage rates on the supply and demand for loanable funds.