Asked by jasika mirza on Sep 24, 2024
Verified
If movie theatres decided to increase the price for the movie tickets,holding other factors constant,what would happen to the demand for popcorn in the theatres?
A) the demand for popcorn would shift to the left because popcorn and movies are substitute goods.
B) the demand for popcorn would shift to the left because popcorn and movies are complementary goods.
C) the demand for popcorn would shift to the right because popcorn and movies are substitute goods.
D) the demand for popcorn would shift to the right because popcorn and movies are complementary goods.
Substitute Goods
Products or services that can be used in place of each other, satisfying the same consumer needs or desires.
Complementary Goods
Products or services that are used together, where the use or consumption of one enhances the value of the other.
Demand SHIFT
A change in the market demand curve, where at every price level, the quantity demanded of a good increases or decreases due to factors other than its price such as consumer preferences, income, or the price of other goods.
- Identify the concepts of complement and substitute goods and their impact on demand.
Verified Answer
MV
Manjari Verma4 days ago
Final Answer :
B
Explanation :
Popcorn and movies are complementary goods, meaning that the demand for one increases with the demand for the other. If the price for movie tickets increases, fewer people may go to the movies, which would decrease the demand for popcorn in theatres.
Learning Objectives
- Identify the concepts of complement and substitute goods and their impact on demand.