Multiple Choice
-The above figure shows the demand curve for movie rentals from Blockbuster. Which of the following is true?
A) Consumer expenditure on movie rentals will always increase whenever Blockbuster lowers its price.
B) Blockbuster will receive more total revenue if it charges $4.00 per movie rental rather than $3.00.
C) The price elasticity of demand for movie rentals falls as Blockbuster raises its price.
D) The demand for movie rentals is more price inelastic at $1.00 than it is at $1.50.
Correct Answer:
Verified
Correct Answer:
Verified
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