In the early 1980s, movie rentals averaged $5 a night; by the early 1990s that average was $1 per night. This is an example of a supply curve shifter based on:

Question

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The decrease in movie rental prices from $5 to $1 per night suggests that new suppliers entered the market and increased competition, causing a shift in the supply curve. Therefore, the best choice is D. A change in tastes and preferences (Choice A) could have influenced the demand curve, but not the supply curve. Decrease in wages (Choice B) would result in a leftward shift of the supply curve, and an increase in the number of VRCs owned by consumers (Choice C) would shift the demand curve, not the supply curve.

In the Early 1980s, Movie Rentals Averaged $5 a Night;