ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The demand curve for movie tickets will move right
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The quantity demanded of movie tickets will increase
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The demand curve for movie tickets will move left
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The quantity demanded of movie tickets will decrease
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Detailed explanation-1: -An increase in the price of movie theater tickets (a substitute for DVD rentals) will cause the demand curve for DVD rentals to shift to the right. An increase in the wages paid to DVD rental store clerks (an increase in the cost of a factor of production) shifts the supply curve to the left.
Detailed explanation-2: -The demand curve for movie tickets will shift in, causing the price to decrease and the quantity to decrease.
Detailed explanation-3: -The Substitution Effect When the price of pizza rises, pizza becomes more expensive compared with other foods, such as tacos and salads. So, as the price of a slice of pizza rises, consumers have an incentive to buy one of those alternatives as a substitute for pizza. This causes a drop in the amount of pizza demanded.
Detailed explanation-4: -Demand is elastic when a change in price causes a relatively larger change in quantity demanded. Demand is inelastic when a change in price causes a relatively smaller change in quantity demanded.