The Table Below Shows the Quantity Demanded and Quantity Supplied

question 11

Essay

The table below shows the quantity demanded and quantity supplied of DVDs at each price level. $$\begin{array} { | r | r | r | c | } \hline \begin{array} { c } \text { Price } \\\text { (dollars) }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Demanded }\end{array} & \begin{array} { c } \text { Quantity } \\\text { Supplied }\end{array} & \begin{array} { c } \text { Surplus (+) } \\\text { Shortage (-) }\end{array} \\\hline 20.00 & 10 & 500 & \\\hline 18.00 & 25 & 400 & \\\hline 16.00 & 45 & 250 & \\\hline 14.00 & 80 & 200 & \\\hline 12.00 & 140 & 140 & \\\hline 10.00 & 200 & 80 & \\\hline 8.00 & 300 & 40 & \\\hline 6.00 & 450 & 5 & \\\hline\end{array}$$ (a) Fill out the column entitled Surplus/Shortage.
(b) What are the equilibrium price and equilibrium quantity in this market?
(c) Suppose that consumers' taste changed in favor of DVDs due to their high quality. What happens at the original equilibrium price level calculated in Part (b)?
(d) Suppose that advances in technology reduced the production cost of DVD players. What happens at the original equilibrium price level calculated in Part (b)?

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Definitions:

Vitamin E

A group of eight fat-soluble compounds that include four tocopherols and four tocotrienols, known for their antioxidant properties.

Caffeine

A stimulant drug found in coffee, tea, chocolate, and certain medications, known for its ability to enhance alertness and focus.

Reflective Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, and/or evaluating information.

John Dewey

An American philosopher, psychologist, and educational reformer whose ideas have been influential in education and social reform.