The price of movie tickets in a town has risen from $7 to $9. What is the most likely effect of the change in price?

A.
The demand curve for movie tickets will move right.

B.
The quantity demanded of movie tickets will decrease.

C.
The demand curve for movie tickets will move left.

D.
The quantity demanded of movie tickets will increase.

1 answer

The correct answer is:

B. The quantity demanded of movie tickets will decrease.

When the price of a good rises, the quantity demanded typically decreases, assuming all other factors remain constant. This follows the law of demand, which states that there is an inverse relationship between price and quantity demanded.