Suppose the Equilibrium Price of Movie Tickets Is $10

question 3

Multiple Choice

Suppose the equilibrium price of movie tickets is $10. If the supply curve for movies shifts_{-------------}, the equilibrium price will _{-------------}.

• A)rightward; increase
• B)leftward; decrease
• C)leftward; not change
• D)rightward; decrease
• E)rightward; not change

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Definitions:

Variable Cost Curve

A graphical representation showing how total variable costs change with changes in output level.

Total Cost Curve

In economics, a graphical representation that shows how total cost changes with changes in the quantity of output produced.

Break-Even Point

The financial point where total costs and total revenues are exactly equal, meaning there is no profit or loss.

Short Run

In economics, a timeframe during which the production process has limitations due to fixed resources, leading to constraints on firm adjustments and outputs.