Question

By Using Graphs of Supply and Demand, show what will happen to the price and sales...

By Using Graphs of Supply and Demand, show what will happen to the price and sales in the movie theater prices if the following occur: (1) an increase in the price of DVD rentals, (2) Increase in the price of parking at the movie theater and (3) Increase in theater worker's wages. Explain what will happen to the shifts and/or movements in each case and then determine what happens to the sales and price of movie theater prices.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1.DVDs and movie tickets are substitutes.A rise in price of DVD rentals will make movie tickets relatively cheap and increase its demand,thereby increasing price and quantity of movie tickets.

2.Parking tickets and movie tickets are complements.A rise in price of pricing tickets will make watching movies expensive,reducing its demand and causing both price and quantity to fall.

3.Higher wages increases cost of production, reducing supply, increasing price and reducing quantity.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Explain what would happen to the price and sales in Apple Iphone market if the following...
Explain what would happen to the price and sales in Apple Iphone market if the following occur: (1) cost of iphone glass is cheaper to make, (2) Increase in incomes in US and around the world and (3) Price of the Cellphone plans became cheaper due to competition.  Explain what will happen to the shifts and/or movements to the demand and supply curve in each case and then determine what happens to the sales and price Iphones. Each of the three...
Explain what would happen to the price and sales in Apple Iphone market if the following...
Explain what would happen to the price and sales in Apple Iphone market if the following occur: (1) cost of iphone glass is cheaper to make, (2) Increase in incomes in US and around the world and (3) Price of the Cellphone plans became cheaper due to competition.  Explain what will happen to the shifts and/or movements to the demand and supply curve in each case and then determine what happens to the sales and price Iphones. Each of the three...
Using the graphs of demand and supply of bonds, explain what happens when there is a...
Using the graphs of demand and supply of bonds, explain what happens when there is a large federal government deficit. Draw the graphs and explain.
If the country is in a recession, using a supply demand diagram show what will happen...
If the country is in a recession, using a supply demand diagram show what will happen to prices and quantities in the yacht market in comparison with the market for gasoline.
Using the aggregate demand and aggregate supply model, show and explain what shifts in AD and...
Using the aggregate demand and aggregate supply model, show and explain what shifts in AD and AS resulted in the changes in prices and output that occurred during World War II in the U.S. The oil crisis began in October 1973 when the members of the Organization of Arab Petroleum Exporting Countries proclaimed an oil embargo. The embargo was targeted at nations perceived as supporting Israel during the Yom Kippur War. Using AD-AS graphs, show and explain the effect of...
Using demand and supply graphs for road space (where Q = quantity of road space and...
Using demand and supply graphs for road space (where Q = quantity of road space and P= price of roadspace), clearly explain road congestion. Secondly, show how an increase in the supply of roadspace does not permanently solve the road congestion problem.
Using two separate money demand and supply graphs, show how inflation (rise in P) can occur...
Using two separate money demand and supply graphs, show how inflation (rise in P) can occur in two ways
Given supply, if Demand decreases, what happens to equilibrium price and output sales? If the decrease...
Given supply, if Demand decreases, what happens to equilibrium price and output sales? If the decrease in Demand is larger than increase in Supply, what happens to equilibrium price and output sales?
1. Using the IS-LM graphs, explain what will happen to output and the interest rate if...
1. Using the IS-LM graphs, explain what will happen to output and the interest rate if consumers suddenly become pessimistic and decrease their consumption spending at all levels. 2. Using the IS-LM graphs, explain what will happen to output and the interest rate if financial panic leads to an increase in the demand for money.
1. Suppose the U.S. economy moves out of a recession and incomes rise. What will happen...
1. Suppose the U.S. economy moves out of a recession and incomes rise. What will happen to the equilibrium prices and quantities of normal goods? If price stays the same would that be equilibrium? Why or why not? What will eventually happen in the market? What happens to equilibrium price and quantity? Which quantity is affected and how do you know? Would your answer be the same if you were discussing inferior goods? Explain using supply/demand graphs. 2. Draw a...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT