When markets are interdependent,the prices of all products must be simultaneously determined.Here a tax on movie tickets shifts the supply of movies upward from Sy to S*M,as shown in (a). The higher price of movie tickets($6.35 rather than $6.00)initially shifts the demand for videocassettes upward (from Dy to D'v), causing the price of videos to rise (from $3.00 to $3.50),as shown in(b).When markets are interdependent, the prices of all products must be simultaneously determined. Here a tax on movie tickets shifts the supply of movies upward from SM to S*M, as shown in (a). The higher price of movie tickets ($6.35 rather than $6.00) initially shifts the demand for videocassettes upward (from DV to D’V), causing the price of videos to rise (from $3.00 to $3.50), as shown in (b)