Asked by Kaitlynn Whitworth on May 05, 2024
Verified
(Figure: Four Markets for Online Movie Rentals) Use Figure: Four Markets for Online Movie Rentals.Which of the graphs shows what may happen if D1 or S1 is the original curve and D2 or S2 is the new curve and if some of the online stores that rent online movie rentals close?
A) A
B) B
C) C
D) D
Original Curve
Refers to the initial state or baseline condition of a graphical representation before any changes or impacts are applied.
New Curve
In economic contexts, refers to a shifted demand or supply curve due to changes in factors affecting them, such as consumer preference or production costs.
- Understand the effects of supply and demand shifts in various market scenarios.
Verified Answer
DD
Davotrick DotreyMay 08, 2024
Final Answer :
B
Explanation :
Graph B shows a shift from the original curve (D1 or S1) to the new curve (D2 or S2) with a decrease in quantity demanded (Q1 to Q2) and a decrease in price (P1 to P2). This is consistent with the closure of some online movie rental stores leading to a decrease in demand and a decrease in price in order to maintain sales.
Learning Objectives
- Understand the effects of supply and demand shifts in various market scenarios.
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