What Is the Most Likely Effect of the Development of Rental

question 214

Multiple Choice

What is the most likely effect of the development of rental movies and online movie streaming on the movie theater (or cinema) industry?

• A)decreased costs of producing movies
• B)increased demand for movie theater tickets
• C)movie theater tickets become an inferior good
• D)increased price elasticity of demand for movie theater tickets

---

Definitions:

Technological Progress

It denotes advancements and improvements in technology, which enhance productivity and efficiency in various sectors.

Income Inequality

The unequal distribution of income among individuals or groups within a society.

Labor-intensive Products

Goods that require a relatively high amount of labor to produce, compared to the amount of capital required.

Gini Coefficient

A measure of income inequality within a population, ranging from 0 for perfect equality, to 1 for maximal inequality.