Suppose That the Demand for Movie Tickets Is Price Inelastic

question 235

Multiple Choice

Suppose that the demand for movie tickets is price inelastic for the range of prices between $10 and $12. If a movie theater raises the price of tickets from $10 to $12, what will happen to total revenues?

• A) Total revenues will decrease.
• B) Total revenues will increase.
• C) Total revenues will not change.
• D) Total revenues will have no relationship to the quantity of ties demanded.

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Definitions:

Positive Message

Communication that conveys good news, encouragement, or optimism.

Routine Replies

Standard responses to common inquiries or situations, often used in customer service and communication protocols.

Indirect Approach

A communication strategy that presents supporting details first, leading up to the main point or request, often used to soften the impact of negative news.

Main Idea

The central or most important thought, concept, or argument that is being conveyed in a text or discourse.