Question

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.

Answer 1

Upward sloping

Step-by-step explanation:

An increase in the demand for movies will increase the salaries of actors because the demand for actors will increase. In long-run overall supply of the movies will be high, which is why, the supply curve for the movies will be upward sloping. Increase in the supply of movies in long-run will be depicted by upward supply curve.