Question 1

-Refer to Table 6-6. Based on the data in the table, between a price of $10.99 and $12.99, the demand for streaming service is

Accepted Answer

A)  elastic. 
B)  unit elastic. 
C)  inelastic. 
D)  perfectly inelastic. 
A)  elastic. 
B)  unit elastic. 
C)  inelastic. 
D)  perfectly inelastic.

Question 2

Tickets for the 2019 MLS Cup final between Seattle and Toronto went on sale on November 1 and sold out in just 20 minutes. The average resale price for tickets through SeatGeek, the official ticketing partner of Major League Soccer, was $569 just 2 days before the game, considerably higher than the average face-value price of tickets for the event. Sixty-nine thousand fans were expected to attend the game, making this the second-largest MLS Cup crowd in history.
Source: "Sold-out 2019 MLS Cup is the hottest ticket in recent MLS history," mlssoccer.com, November 10, 2019.
-Refer to the Article Summary. How would Major League Soccer know if it was operating on the elastic portion of the demand curve for MLS Cup final tickets?

Accepted Answer

A)  If they increased ticket prices and the total revenue from ticket sales increased. 
B)  If they increased ticket prices and the total revenue from ticket sales did not change. 
C)  If they increased ticket prices and the total revenue from ticket sales decreased. 
D)  If they decreased ticket prices and the total revenue from ticket sales did not change. 
A)  If they increased ticket prices and the total revenue from ticket sales increased. 
B)  If they increased ticket prices and the total revenue from ticket sales did not change. 
C)  If they increased ticket prices and the total revenue from ticket sales decreased. 
D)  If they decreased ticket prices and the total revenue from ticket sales did not change.

Question 3

If the absolute value of the price elasticity of demand for DVD movies is 0.8 then the elasticity of demand of the DVD for the movie Avengers: Endgame should be

Accepted Answer

A)  less then 0.8 in absolute value. 
B)  greater than 0.8 in absolute value. 
C)  equal to 1 in absolute value. 
D)  equal to zero because the DVD of this movie has been out for several years. 
A)  less then 0.8 in absolute value. 
B)  greater than 0.8 in absolute value. 
C)  equal to 1 in absolute value. 
D)  equal to zero because the DVD of this movie has been out for several years.

-Refer to Table 6-6. Based on the data in the table, between a price of $10.99 and $12.99, the demand for streaming service is

If the absolute value of the price elasticity of demand for DVD movies is 0.8 then the elasticity of demand of the DVD for the movie Avengers: Endgame should be

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

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Exam 6: Elasticity: The Responsiveness of Demand and Supply

-Refer to Table 6-6. Based on the data in the table, between a price of $10.99 and $12.99, the demand for streaming service is

If the absolute value of the price elasticity of demand for DVD movies is 0.8 then the elasticity of demand of the DVD for the movie Avengers: Endgame should be

Economics: Foundations and Models

Trade-Offs, Comparative Advantage, and the Market System

Where Prices Come From: The Interaction of Demand and Supply

Economic Efficiency, Government Price Setting, and Taxes

Externalities, Environmental Policy, and Public Goods

The Economics of Health Care

Firms, the Stock Market, and Corporate Governance

Comparative Advantage and the Gains From International Trade

Consumer Choice and Behavioral Economics

Technology, Production, and Costs

Firms in Perfectly Competitive Markets

Monopolistic Competition: The Competitive Model in a More Realistic Setting

Oligopoly: Firms in Less Competitive Markets

Monopoly and Antitrust Policy

The Markets for Labor and Other Factors of Production

Public Choice, Taxes, and the Distribution of Income

Filters