A theater puts on sale 4,000 tickets for a Saturday night performance, this quota is the maximum capacity of the theater, taking into account the capacity per COVID. The selling price of each ticket is unique and amounts to $1,200. What can we affirm with respect to the previous text? I. Theater tickets have a price elasticity of supply greater than 1. II. Theater tickets are absolutely inelastic. III. Theater tickets have a price elasticity of supply equal to zero. Select one: a. II and III b. I and III c. III only d. I only e. Only II
A theater puts on sale 4,000 tickets for a Saturday night performance, this quota is the maximum capacity of the theater, taking into account the capacity per COVID. The selling price of each ticket is unique and amounts to $1,200. What can we affirm with respect to the previous text? I. Theater tickets have a price elasticity of supply greater than 1. II. Theater tickets are absolutely inelastic. III. Theater tickets have a price elasticity of supply equal to zero. Select one: a. II and III b. I and III c. III only d. I only e. Only II
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A theater puts on sale 4,000 tickets for a Saturday night performance, this quota is the maximum capacity of the theater, taking into account the capacity per COVID. The selling price of each ticket is unique and amounts to $1,200. What can we affirm with respect to the previous text?
I. Theater tickets have a price elasticity of supply greater than 1.
II. Theater tickets are absolutely inelastic.
III. Theater tickets have a price elasticity of supply equal to zero.
Select one:
a. II and III
b. I and III
c. III only
d. I only
e. Only II
Expert Solution
Step 1: Define key term:
Price Elasticity of Supply: Price elasticity of supply measures how the quantity of good or service supplied by producers responds to changes in its price.
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