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A Cinema Decides to Increase the Price of Its Seats

Question 12

Multiple Choice

A cinema decides to increase the price of its seats and, as a result, finds that its revenue increases. This means that


A) the demand for seats is inelastic with respect to price.
B) the demand for seats is elastic with respect to income.
C) the income elasticity of demand for seats is negative.
D) the demand for seats is inelastic with respect to income.
E) the demand for seats is elastic with respect to price.

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