Consider the market for DVD movie rentals, which is perfectly competitive. The market supply curve slopes upward, the market demand curve slopes downward, and the equilibrium rental price equals $3.50. Indicate how each of the following events will have an effect on the market clearing price and on the demand curve faced by the individual rental store. Part 2 People's tastes change in favor of going to see more movies at cinemas with their friends and family members. Market Clearing Price Firm's Demand Curve