Multiple Choice
The management of Local Cinema has estimated the monthly demand for tickets to be ln Q = 22,328 − 0.41 ln P + 0.5 ln M − 0.33 ln A + 100 ln PDVD,where Q = quantity of tickets demanded,P = price per ticket,M = income,A = advertising outlay,and PDVD = price of a DVD rental.It is known that P = $5.50,M = $9,000,A = $900,and PDVD = $3.00.Determine the own price elasticity of demand for movie tickets.
A) −0.29
B) −0.32
C) −0.39
D) −0.41
Correct Answer:
Verified
Correct Answer:
Verified
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