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:

Product E6

A specific product or item in a company's lineup or inventory, indicated by the designation 'E6'.

Product J2

A specific item or model produced by a company, referred to as "J2."

Activity-Based Costing

An accounting method that assigns costs to products or services based on the activities they require, aiming to provide more accurate cost information.

Product L3

Denotes another distinct product or model within a company's merchandise or production lineup, serving as a specific reference to differentiate it from other items.