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Movie theater prices have increased coincidentally with illegal downloading of movies off of the internet
Movie theater prices have increased coincidentally with illegal downloading of movies off of the internet. Why?
Expert Solution
The great elastic demand for movies has made movie theater's price hike coincidentally with the downloading of movies from the internet. Movie cinemas hike movie prices due to large elastic demand to make more profits. The illegal downloading of movies from the internet has increased because of the high prices charged at cinemas. Easy access to WIFI connections has also catalyzed the download of movies from the internet because it is cheap. Most movie download sites have also started uploading high-quality movie films ready for download, thereby influencing download of movies from the internet. Therefore, it is cheaper for individuals to download and watch movies at home than in the theater. Movie theaters charge high prices because they offer a 3D feature that makes them feel like they are included in the movie storyline. Further, cinema screens display a more detailed video display compared to other screens making them more expensive.
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