When the Manager of a Local Movie Theater Raises the Price

question 27

Multiple Choice

When the manager of a local movie theater raises the price of movie tickets from $7.50 to $8.50 total revenue falls.This means that:

• A)the demand for movie tickets is highly elastic.
• B)the supply of movie ticket is perfectly elastic.
• C)the supply of movie tickets is elastic.
• D)the demand for movie tickets is inelastic.
• E)the supply of movie tickets is inelastic.

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Definitions:

Operations

Activities involved in the day-to-day running of a business for the purpose of producing value for the stakeholders.

Investing Activities

Transactions involving the purchase or sale of long-term assets and investments, reflecting a company's spending or gains from such assets.

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of an entity.

Operations

Refers to the ongoing activities of a business that are involved in the production and distribution of products or services.