The higher video price feeds back into the movie ticket market, causing demand to shift from Dy to D'm and the price of movies to increase from $6.35 to $6.75. This continues until a general equilibrium is reached,as shown at the intersection of D*M and S*m in(a),with a movie ticket of $6.82,and the intersection of D*y and Sy in (b),with a video price 0fS3.58. The higher video price feeds back into the movie ticket market, causing demand to shift from DM to D’M and the price of movies to increase from $6.35 to $6.75. This continues until a general equilibrium is reached, as shown at the intersection of D*M and S* M in (a), with a movie ticket of $6.82, and the intersection of D*V and SV in (b), with a video price of $3.58