Suppose You Observe That the Price of Movie Admissions Decline

question 334

Multiple Choice

Suppose you observe that the price of movie admissions decline and that the number of people attending movies declines as well. If only the demand curve or the supply curve shifts, this suggests that

• A) movies are a normal good and incomes have increased.
• B) high salaries for Hollywood actors have increased the cost of movie making.
• C) movie theaters have experienced an increase in their operating costs due to increases in the minimum wage.
• D) admission prices for other types of entertainment, such as live shows and sporting events, have also declined.

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Definitions:

Serviced

The act of maintaining, repairing, or checking a machine or device to ensure it operates correctly.

Sway Bar Links

Components of a vehicle's suspension system that reduce body roll during turns.

Excessive Lean

A condition in an internal combustion engine where the air-fuel mixture has too much air and too little fuel, leading to poor performance and possible engine damage.

Sway

The lateral movement of a vehicle, often undesirable, affecting its stability.