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

Question

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The decrease in movie rental prices from $5 to $1 per night can only be explained by the entry of new suppliers into the market. This shift in the supply curve led to increased competition and lower prices for consumers. Changes in tastes and preferences or the wages of workers in the video rental stores would not have led to such a dramatic change in rental prices. An increase in the number of VRCs owned by consumers is not a factor that would shift the supply curve as it does not affect the rental prices set by suppliers.

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