Complementary Goods Affect Demand

Steps:

• Recall that a leftward demand shift occurs when non-price factors reduce consumer willingness or ability to buy.
• Identify demand shifters: income, tastes, prices of related goods (substitutes/complements), expectations.
• For cinema tickets, transport is a complementary good required to access the service.
• An increase in transport costs raises the total expense for consumers, decreasing demand for cinema visits.

Why C is correct:

• Per the law of demand for related goods, an increase in a complement's price (transport) reduces demand for the primary good (cinema tickets), shifting the curve left.

Why the others are wrong:

• A: Cinema heating expenses are a production cost, shifting the supply curve left, not demand.
• B: Scriptwriter payments are input costs for producers, affecting supply, not consumer demand.
• D: Income taxes on operators impact producer profits and supply, not buyer demand.

Final answer: C