The cenima manager observes that the increase in price

Reference no: EM1328388

Question about Economics - Price Elasticity

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 price elasticity of demand for movies?

A) 0.5

B) 0.8

C) 1.0

D) 1.2

Reference no: EM1328388

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