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

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The Answer of 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

Suppose the Price of Movies Seen at a Theater Rises