Using Supply- And- Demand Diagrams, Show and Explain the Effects

question 31

Essay

Using supply- and- demand diagrams, show and explain the effects of the following events on the price of
CD- Rs and the quantity of CD- Rs sold. For each event, identify which of the determinants of demand or supply affected, how it influences demand or supply, and what happens to the equilibrium price and quantity.
a) The price of a CD burner falls.
b) Workers who make CD- Rs get a pay raise.
c) Producers introduce new cost- saving technologies in their CD- R production plants.
d) Consumers' incomes increase and CD- Rs are a normal good.
e) Free peer- to- peer music exchange through the Internet becomes legal.

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Definitions:

Flat Hierarchical Model

An organizational structure with few or no levels of middle management between staff and executives, promoting open communication and quicker decision-making.

Member Motivation

The driving force behind individuals' engagement, participation, and effort in a group or organization.

Committee

A group of individuals designated to perform a specific task or to deliberate on a particular issue or range of issues.

Greater Empowerment

The process of granting employees more authority and responsibility, enabling them to make decisions and act independently.