An increase in the demand for movies also increases the salaries of actors and actresses. Is the long-run supply curve for movies likely to be horizontal or upward sloping? Explain. If an increase in the demand for movies also increases the salaries of actors and actresses, then the long-run supply curve for movies is likely to be

Question

Business

Atlas

2 May, 22:36

An increase in the demand for movies also increases the salaries of actors and actresses. Is the long-run supply curve for movies likely to be horizontal or upward sloping? Explain. If an increase in the demand for movies also increases the salaries of actors and actresses, then the long-run supply curve for movies is likely to be

+4

Answers (1)

Know the Answer?

Tianna Fletcher · Answer 1

Upward sloping because increases in output raise input prices.

Explanation:

If an increase in the demand for movies also increases the salaries of actors and actresses, then the long-run supply curve for movies is likely to be upward sloping because increases in output raise input prices.