Question
In the question below, two statements (
- I and (I
- I are given. These statements may be either independent causes or may be effects of independent causes or a common cause. One of these statements may be the effect of the other statement. Read both the statements and decide which of the following answer choices correctly depicts the relationship between these two statements. Statement I: Foot traffic and physical ticket sales at major cinema chains have plummeted to historic lows over the last three years. Statement II: Major film studios have shifted to a "Digital-First" model, releasing high-budget movies directly to streaming platforms on the same day as their theatrical release.
Solution
Analyze Statement II: This statement describes a shift in corporate strategy—releasing movies directly to homes via streaming. This change in availability and convenience acts as the cause. Analyze Statement I: This statement describes the result—a drop in people going to physical theaters. Since consumers can now watch the same "high-budget movies" at home, they have less incentive to visit a cinema. This is the effect. Conclusion: The change in how the product is delivered (Statement II) has caused the change in where people consume the product (Statement I). Therefore, Statement II is the cause and Statement I is its effect.
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