Final answer:
The opening of new nightclubs and the elimination of a tax on local entertainment businesses would impact the entertainment centers and movie theaters in the district.
Step-by-step explanation:
The statement is false. The opening of three new nightclubs that offer decent bands and no cover charge, but make their money through selling food and drink, would result in a decrease in demand for movie tickets. This is because people might choose to go to the nightclubs for entertainment instead of going to movie theaters.
Additionally, when the city eliminates a tax on all local entertainment businesses, the quantity supplied of movies at any given price would increase by 10%. This means that there would be more movie theaters and a higher supply of movies available in the district.