The success of Nelvana's animated children's programming (Babar, Care Bears, Eek! The Cat etc.)in the late 80's and early 90's, increased production of animated features, increasing the demand for animators much faster than the supply of animators was increasing.As a result, in the market for animators, the equilibrium wage fell and the equilibrium quantity increased.

Question

Quizplus · Accepted Answer

According to the law of supply and demand, an increase in demand for animators would lead to an increase in wages and potentially increased quantity supplied. Therefore, the statement that the equilibrium wage fell and the equilibrium quantity increased is false.

The Success of Nelvana's Animated Children's Programming (Babar, Care Bears