-The above figure shows the demand curve for movie rentals from Redbox. Which of the following is TRUE?
A) Consumer expenditure on movie rentals will always increase whenever Redbox lowers its price.
B) Redbox will receive more total revenue if it charges $4.00 per movie rental rather than $3.00.
C) The price elasticity of demand for movie rentals falls as Redbox raises its price.
D) The demand for movie rentals is more price inelastic at $1.00 than it is at $1.50.

Question

-The above figure shows the demand curve for movie rentals from Redbox. Which of the following is TRUE?
A) Consumer expenditure on movie rentals will always increase whenever Redbox lowers its price. 
B) Redbox will receive more total revenue if it charges $4.00 per movie rental rather than $3.00. 
C) The price elasticity of demand for movie rentals falls as Redbox raises its price. 
D) The demand for movie rentals is more price inelastic at $1.00 than it is at $1.50.

Quizplus · Accepted Answer

The Answer of 
-The above figure shows the demand curve for movie rentals from Redbox. Which of the following is TRUE?
A) Consumer expenditure on movie rentals will always increase whenever Redbox lowers its price. 
B) Redbox will receive more total revenue if it charges $4.00 per movie rental rather than $3.00. 
C) The price elasticity of demand for movie rentals falls as Redbox raises its price. 
D) The demand for movie rentals is more price inelastic at $1.00 than it is at $1.50.

-The Above Figure Shows the Demand Curve for Movie Rentals