When the price of movie tickets in a certain town was reduced, the movietheaters' revenues did not change.This suggests that the demand for movie tickets in that town has a price- elasticity coefficient of
A)1.0.
B)greater than 1.
C) 0.5
D) zero

Question

Quizplus · Accepted Answer

The price-elasticity coefficient of 1.0 indicates unitary elasticity, meaning that the percentage change in quantity demanded is equal to the percentage change in price, resulting in no change in total revenue.

When the Price of Movie Tickets in a Certain Town