Solved

The Demand for Movies Is Unit Elastic If

Question 134

Multiple Choice

The demand for movies is unit elastic if


A) a 5 per cent increase in the price leads to a 5 per cent decrease in the quantity demanded.
B) any increase in the price leads to a 1 per cent decrease in the quantity demanded.
C) a 5 per cent decrease in the price leads to an infinite increase in the quantity demanded.
D) a 5 per cent increase in the price leads to a 5 per cent increase in total revenue.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents