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The Shift in Movie Market: Impact of Rising Ticket Prices on Consumer Choices

The article discusses how rising movie ticket prices have influenced consumer behavior, leading to a shift in demand towards cheaper alternatives like RedBox. The increase in ticket prices has caused a decrease in the demand for traditional movie theater experiences, resulting in surplus and empty seats. Economic principles like the Law of Demand are highlighted to explain these market changes.

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The Shift in Movie Market: Impact of Rising Ticket Prices on Consumer Choices

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  1. The Movie Market 2009-2010 Article: Movie ticket prices reach new milestone (The Augusta Chronicle)

  2. The Newspaper Article

  3. The average income has been affected by the unemployment. (inferior good –> income decrease & demand increase) • # of buyers has affected the movie market, because more people seek alternative choices for high movie ticket prices. • Consumers have preferences on cheaper alternatives instead of expensive theaters, ex. RedBox. • The prices of movie tickets has increased, therefore there is increased quantity of supplied movies, but quantity demanded for movie theater experiences has decreased.(graphed) • Law of Demand: Price = Quantity Demanded Economic reasons for the changes in the movie market Market for movie theater experiences P surplus* S 3. 1. 2. D Q * surplus means more empty seats at the theaters, as consumers go elsewhere

  4. price • The quantity demanded of movie theater experiences has decreased as the prices of movie tickets have sky-rocketed. As a result, consumers find alternative choices for movie entertainment, such as the RedBox. Therefore, the demand has increased for this cheaper substitute good, and more RedBoxes are supplied for the consumers’ convenience. The Alternative Movie Market from 2009 to 2010 supply demand1 demand0 quantity

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