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?

The demand curve for movie tickets will move right.

The quantity demanded of movie tickets will decrease.

The demand curve for movie tickets will move left.

The quantity demanded of movie tickets will increase.

1 answer

The most likely effect of the change in price from $7 to $9 is that the quantity demanded of movie tickets will decrease.

When the price of a good increases, typically, the quantity demanded for that good decreases, as some consumers may find the higher price unaffordable or may seek alternatives. Consequently, the correct answer is:

The quantity demanded of movie tickets will decrease.