What is the most likely effect of the development of DVD players and Internet streaming on the movie theater industry?
A. Movie theater tickets become an inferior good
B. Increased price elasticity of demand for movie theater tickets
C. Decreased costs of producing movies
D. Increased demand for movie theater tickets
Answer: B
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Which of the following pairs of market types are both characterized by having a large number of firms?
A) monopoly and oligopoly B) monopoly and monopolistic competition C) perfect competition and oligopoly D) perfect competition and monopolistic competition
All of the following apply to the description of a market in equilibrium except: a. quantity supplied equals quantity demanded. b. the intersection of the supply and demand curves. c. no excess supply exists
d. no excess demand exists. e. the price of the good is falling.
All of the following shift the supply of watches to the right except
a. an increase in the price of watches b. an advance in the technology used to manufacture watches c. a decrease in the wage of workers employed to manufacture watches d. manufacturers' expectations of lower watch prices in the future. e. All of the above cause an increase in the supply of watches.
Which of the following is NOT a necessary condition for a firm to price discriminate?
A) The firm must be able to separate markets. B) Buyers in different markets must have different elasticities of demand. C) Resale of the product must be preventable. D) The firm must be a price-taker.