Question

An increase in the demand for movies also increases the salaries of actors and actresses. Is the​ long-run supply curve for movies likely to be horizontal or upward​ sloping? Explain. If an increase in the demand for movies also increases the salaries of actors and​ actresses, then the​ long-run supply curve for movies is likely to be

Answer 1

Answer:

Upward sloping because increases in output raise input prices.

Explanation:

If an increase in the demand for movies also increases the salaries of actors and​ actresses, then the​ long-run supply curve for movies is likely to be upward sloping because increases in output raise input prices.