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Figure: Four Markets for DVDs
-(Figure: Four Markets for DVDs) Look at the figure Four Markets for DVDs. If D₁ or S₁ is the original curve and D₂ or S₂ is the new curve, which of the graphs illustrates what may happen in the market for DVDs if there is an increase in the cost of a movie ticket at the local theater?

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Figure: Four Markets for DVDs

-(Figure: Four Markets for DVDs) Look at the figure Four Markets for DVDs. If D₁ or S₁ is the original curve and D₂ or S₂ is the new curve, which of the graphs illustrates what may happen in the market for DVDs if there is an increase in the cost of a movie ticket at the local theater?

Quizplus · Accepted Answer

An increase in the cost of a movie ticket at the local theater would likely lead to an increase in demand for DVDs as they become a more attractive alternative for entertainment. This would shift the demand curve for DVDs to the right, which is illustrated in graph A.

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