1. Let Edt= -2. This implies that the demand for movie tickets is

Inelastic, because a 1% change in Ptchanges Qdtby 2 units

Inelastic, because a 1% change in Ptchanges Qdtby 1%

Elastic, because a 1% change in Ptchanges Qdtby 1%

Elastic, because a 1% change in Ptchanges Qdtby 2%

2.    Regulatory agencies engage in all of the following activities _______.

controlling entry into the regulated industries

overseeing the quality of service provided by the firms

setting prices that consumers will pay

None of the Above

All the Above

3.    Season tickets for sporting events is an example of:

Bundling

Two-part tariff

Price Discrimination

Block Pricing

4. The following is a Cobb-Douglas production function: . What is correct here?

		A one-percent change in L will cause Q to change by one percent
		A one-percent change in K will cause Q to change by two percent
		This production function displays increasing returns to scale
		This production function displays constant returns to scale
		This production function displays decreasing returns to scale

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