To analyze the impact of these two events on the market for movie tickets, we need to consider each event separately and how they affect supply and demand.
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Falling Corn Prices: Since popcorn and movie tickets are complementary goods, a decrease in the price of corn (which lowers the production costs of popcorn) can lead to a decrease in the price of popcorn. This change makes the overall movie-going experience more attractive (since popcorn is often a significant part of that experience), potentially increasing the demand for movie tickets.
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Decrease in Movies Offered by Theaters: The simultaneous decline in the number of movies that theaters offer can lead to a decrease in supply. With fewer movies available, theaters may sell fewer tickets, which can decrease the overall demand for movie tickets as well.
Now, combining these effects:
- The supply of movie tickets may decrease due to fewer movies being offered.
- The demand for movie tickets may increase due to lower popcorn prices.
Given that these impacts pull in opposite directions:
- The equilibrium quantity is uncertain as the demand might increase while the supply decrease, making it hard to predict if the quantity will rise or fall.
- The equilibrium price is also uncertain. If demand increases but supply decreases, the price could either rise significantly or stabilize, depending on the magnitude of changes.
In conclusion, while we can't definitively state the outcome for quantity or price, we have a stronger case for a decrease in supply due to fewer movies, and an increase in demand due to cheaper popcorn.
Therefore, based on the information provided, the best answer is:
The market equilibrium price of movie tickets will definitely rise.
This is because the decrease in supply combined with an increase in demand tends to push prices upward.