The number of movie-goers has decreased. One explanation is that
A) the prices of substitutes have fallen.
B) the prices of complementary products like popcorn have fallen.
C) people have higher incomes and movies are a normal good.
D) people expect the price of movies will rise in the future.
E) people have lower incomes and movies are an inferior good.

Question

Quizplus · Accepted Answer

When the prices of substitutes fall, people are more likely to choose those substitutes over going to the movies, leading to a decrease in the number of movie-goers.

The Number of Movie-Goers Has Decreased