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:

Symbolic Thinking

The ability to use symbols, words, or objects to represent something that is not physically present.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, typically developed during infancy.

Conservation

The protection and preservation of natural resources, environments, or cultural heritage.

Lateralization

Refers to the specialization of the left and right hemispheres of the brain for different tasks and functions.