Suppose you observe that the price of movie admissions decline and that the number of people attending movies declines as well. If only the demand curve or the supply curve shifts, this suggests that
A) movies are a normal good and incomes have increased.
B) high salaries for Hollywood actors have increased the cost of movie making.
C) movie theaters have experienced an increase in their operating costs due to increases in the minimum wage.
D) admission prices for other types of entertainment, such as live shows and sporting events, have also declined.
D
You might also like to view...
Which of the following would decrease net exports in the United States?
A) A Mexican citizen purchases 100 shares of stock in IBM. B) The U.S. government donates $25 million to Mexico to help victims of a hurricane in Mexico. C) An American party planner purchases 350 piñatas from Mexico. D) The government of Mexico purchases 2,000 Dell laptop computers from the United States.
The existence of marginal social benefits which are not marginal benefits for the industry producing the import substitutes
A) is an argument supporting free trade and non-governmental involvement. B) is an argument supporting the use of an optimum tariff. C) is an argument supporting the use of market failures as a trade-policy strategy. D) is an argument rejecting free trade and supporting governmental involvement. E) is an argument rejecting the domestic market failure concept.