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 demand for movie tickets has a price-elasticity coefficient of 1.0, indicating unitary elasticity, where a change in price does not affect total revenue.

When the Price of Movie Tickets in a Certain Town