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

Yareli Joyce

Business

7 October, 02:23

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

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Chana Roach · 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.