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The Price Elasticity of Demand for Movies Is Approximately 1

Question 108

Multiple Choice

The price elasticity of demand for movies is approximately 1 and 500,000 tickets are sold per day. If the average price of a movie ticket increases by 20 percent, the number of tickets sold each day decreases to


A) 400,000.
B) 300,000.
C) 420,000.
D) 475,000.

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