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 entry of new suppliers into the market results in increased competition, which leads to lower prices. This is the most likely reason for the decrease in movie rental prices from $5 to $1 over the period stated in the question. A decrease in the wages of workers in the video rental stores (B) would not necessarily lead to a shift in the supply curve, as it would only affect the cost of production for the supplier. An increase in the number of VCRs owned by consumers (C) could potentially shift the demand curve, but not the supply curve. A change in tastes and preferences (A) would also affect the demand curve, but not the supply curve.

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