ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The demand goes up.
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The demand goes down.
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The demand stays the same.
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None of the above
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Detailed explanation-1: -Demand Schedule for Tickets The demand curve and the demand schedule reflect the law of demand: As price rises, the quantity demanded falls. Similarly, a decrease in price raises the quantity demanded. As a result, the demand curve is downward sloping.
Detailed explanation-2: -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-3: -What will happen to the demand or quantity demanded for popcorn if the price of movies goes down? Answer: The demand curve for popcorn will shift to the right (increase). Since you would go to more movies if the price of movies goes down, you would also buy more popcorn (since they are complements).
Detailed explanation-4: -Increases in demand are shown by a shift to the right in the demand curve. This could be caused by a number of factors, including a rise in income, a rise in the price of a substitute or a fall in the price of a complement.