When a Movie Theater Increases Its Price from $6 to $7,its

question 78

Multiple Choice

When a movie theater increases its price from $6 to $7,its quantity demanded decreases from 600 to 400 seats.Its price elasticity of demand (expressed as a positive number) equals _____.

• A)0.2
• B)0.9
• C)1.8
• D)2.6

---

Definitions:

Probability Distribution

An analytical function that describes every probable value and its likelihood for a random variable over a predefined interval.

Stock of the Economy

The stock of the economy refers to the total value of all assets and investments available within an economy at a given time.

Expected Standard Deviation

A measure of the amount by which an asset's return is expected to deviate from its average return, used as an indicator of the risk associated with the asset.

Probability Distribution

A function used in statistics to illustrate all potential outcomes and their respective probabilities for a random variable within a fixed range.