Multiple Choice
Suppose the price of movies seen at a theater rises from $12 per couple to $20 per couple.The theater manager observes that the rise in price causes attendance at a given movie to fall from 300 persons to 200 persons.What is the arc price elasticity of demand for movies?
A) 0.5
B) 0.8
C) 1.0
D) 1.2
Correct Answer:
Verified
Correct Answer:
Verified
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