Question:

I really help on this one ! :(?

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hollywood writers negotiate a new agreement with movie producers that they will receive 10 percent of the revenue from every video rental of a movies they worked on. they have no such agreement for movies shown on pay-per-view television.

a. when the new write's agreement comes into effect, what will happen in the market for video rental- that is, will supply or demand shift, and how? as a result, how will consumer surplus in the market for video rentals change? illustrate with diagram, do you think the writer's agreement will be popular with consumer who rent video?

B. consumers consider video rental and pay-per-view movies subtitutable to some extent. when the new writers's agreement comes into effect, what will happen in the market for pay-per view movies-that is, will supply or demand shift, and how? as a result, how will produsersurplus in the market for pay-per-view movies change?illustrate with diagram, do you think the write's agreement will bve popular with cable televisio

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  1. Consumers will have to pay more. Business will go down but not that significantly.

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