The Table Below Shows the Quantity Demanded and Quantity Supplied(A)Fill Out the Column Entitled Surplus/Shortage

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The Answer is (a)

\begin{array} { | r | r | r | r | } \hline \begin{array} { c } ext { Price } \ ext { (dollars) }\end{array} & \begin{array} { c } ext { Quantity } \ ext { Demanded }\end{array} & { \begin{array} { c } ext { Quantity } \ ext { Supplied }\end{array} } & \begin{array} { c } ext { Surplus (+) } \ ext { Shortage ( -} )\end{array} \\hline 20.00 & 10 & 500 & + 490 \\hline 18.00 & 25 & 400 & + 375 \\hline 16.00 & 45 & 250 & + 205 \\hline 14.00 & 80 & 200 & + 120 \\hline 12.00 & 140 & 140 & 0 \\hline 10.00 & 200 & 80 & - 120 \\hline 8.00 & 300 & 40 & - 260 \\hline 6.00 & 450 & 5 & - 445 \\hline\end{array}

(b)Equilibrium occurs when quantity demanded equals quantity supplied,i.e. ,when there are no shortages or surpluses in the market.This point is at a price of $12.00 per DVD and a quantity of 140 DVDs.
(c)The demand for DVDs will increase at each price level.Therefore,at $12.00 per unit,the quantity demanded will be greater than the quantity supplied (140 DVDs).A shortage will appear in the market.
(d)A decrease in the production cost of DVD players increases their supply.The equilibrium price of DVD players decreases,and consumers purchase more of them.Since DVD players and DVDs are complementary goods,the demand for DVDs will shift to the right.At a price of $12.00 per DVD,there will be a shortage of DVDs in the market.

The Table Below Shows the Quantity Demanded and Quantity Supplied

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