quiz chapter 4

Wally operates a DVD movie rental store called Wally's Videos, Because there are many other video stores in the same neighbourhood renting out identical DVD videos at $5 per video, Wally must price each of his videos at $5 per video per night. If Wally were to charge even a penny above the going $5 rate, he would lose all of his daily rental sales to his competitors. On the graph to the right, draw (using the line drawing tool) the demand curve for Wally's videos, per night. Label this demand curve "D' Note: if you are not prompted for a label, then you have used the wrong drawing tool The demand for Wally's videos is The numenc value of the elasticity of demand for Wally's Videos is Price per video per night 5 10 15 20 25 30 35 40 45 50 Number of videos rented per night