Figure 16.1.1

Multiple Choice

Figure 16.1.1
-Refer to Figure 16.1.1 above. After the shift in supply in panel (a) , the higher price of movie tickets causes:

A) demand to decrease in panel (a) , which feeds back into (b) , causing demand to increase in panel (b) .
B) demand to increase in panel (b) and a higher price, which feeds back as higher demand in panel (a) .
C) demand to increase in panel (b) , but not as much as an increase in demand in panel (a) .
D) demand to decrease in both panels, which causes even further decreases in demand.