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28 Sep 2019
2. Consider the market for DVD movie rentals, which is perfectlycompetitive. The market supply curve slopes upward, the marketdemand curve sloped downward, and the equilibrium rental priceequals $3.50. Consider each of the following events, and discussthe effects they will have on the market clearing price and thedemand curve faced by the individual rental store.
a. Peopleâs tastes change in favor of going to see more movies atcinemas with their friends and family members.
b. National DVD-rental chains open a number of new stores in thismarket.
c. There is a significant increase in the price of downloadingmovies on the Internet.
2. Consider the market for DVD movie rentals, which is perfectlycompetitive. The market supply curve slopes upward, the marketdemand curve sloped downward, and the equilibrium rental priceequals $3.50. Consider each of the following events, and discussthe effects they will have on the market clearing price and thedemand curve faced by the individual rental store.
a. Peopleâs tastes change in favor of going to see more movies atcinemas with their friends and family members.
b. National DVD-rental chains open a number of new stores in thismarket.
c. There is a significant increase in the price of downloadingmovies on the Internet.
a. Peopleâs tastes change in favor of going to see more movies atcinemas with their friends and family members.
b. National DVD-rental chains open a number of new stores in thismarket.
c. There is a significant increase in the price of downloadingmovies on the Internet.
manhokwe tawandaLv10
29 Sep 2019
