Question

3-D movies have been popular and charged at a higher price, compared with the traditional 2-D movies. Please analyze the impact of 3-D movies (in the language of economics) on

a. The price elasticity of demand on 2-D movies

Answer 1

Answer 1) The 3-D movies have been popular and charged at a higher price, justufy the concept of price , demand and supply relationship of economics. As 3-D movies are produced less in number and have very high popularity . Due to scarce (low ) in supply and high in demand , prices of such movies are higher than 2-D ( available in high quantity) .

Answer 2) Price elasticity of demand (PED or E_d) is a measurement use in economics study to show the responsiveness, of the demanded quantity of a goods by change in its price ,when no othe factors change in market.

e_p = quantity / price.

In case of 2-D movies , the demand of it have direct impact of price charged , it means demand of movies will fall with incraese in price, that's why 2-D movies are less priced in comparision to 3-D movies in market.