Movie tickets and film streaming services are substitutes. If the price of film streaming increases, what happens in the market
for movie tickets? a. The supply curve shifts to the left. b. The supply curve shifts to the right. c. The demand curve shifts to the left. d. The demand curve shifts to the right.
1 answer:
Answer:
D. The demand curve shifts to the right.
Step-by-step explanation:
Movie tickets and film streaming services are substitutes, so an increase in the price of film streaming will cause an increase in the demand for movie tickets. Thus, at any given price, the demand curve of movie tickets shifts to the right, for example from demand A to demand B or demand C. as in the attached figure.
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Original cost (OC) = $13
New cost (NC) = $19
Percentage increase =
= 46.15 %
New cost (NC) = $19
Percentage increase =
= 46.15 %