The success of Walt Disney's animated film The Lion King in 1994 increased production of animated films, 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

The statement is incorrect. If the demand for animators increased faster than the supply, the equilibrium wage should have increased, not decreased. The equilibrium quantity would have increased in either case.

The Success of Walt Disney's Animated Film the Lion King