Question

Movie tickets and film streaming services are substitutes. If the price of film streaming increases, what happens in the market for movie tickets?a. the supply curve shifts leftb. the supply curve shifts rightc. the demand curve shifts leftd. the demand curve shifts right

Answer 1

Option (D) is correct.

Step-by-step explanation:

It is given that movie tickets and film streaming are substitute goods. Hence, there is a positive relationship between the price of film streaming and demand of movie tickets.

Therefore,

Other things remains constant, if there is an increase in the price of film streaming then as a result the demand for movie tickets increases at a same price level. This would shift the demand curve of movie tickets rightwards.