Sunday, July 10, 2005

What caused this?

You may have been hearing about the slump (the worst in two decades) in Hollywood dealing with the fact that the movie industry isn't generating as much revenue as it had before. Perhaps it was the fact that more people stopped going to the movies to pay for the rising gas prices, but whatever it is, there was obviously a surplus of movie tickets. The movie Fantastic Four was able to help out if not reverse the slump with the opening of their film. War of the Worlds also helped out and with Wedding Crashers and Willie Wonka and the Chocolate Factory coming out, the movie industry seems to be doing great. What have we discussed during microeconomics that could explain the ups and downs of the movie industry?

http://money.cnn.com/2005/07/10/news/newsmakers/boxoffice_ff.reut/index.htm

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