The Table Below Shows the Quantity Demanded and Quantity Supplied

question 2

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:

Cognitive Therapy

A form of psychotherapy that treats mental health problems by altering dysfunctional thoughts, behaviors, and emotional responses.

Systematic Desensitization

A behavioral therapy technique designed to gradually reduce anxiety and fear by slowly exposing the individual to the anxiety source without any danger.

Cognitive Therapy

A form of psychotherapy that emphasizes the importance of thought patterns in contributing to and maintaining psychological disorders.

Behavior Therapy

A therapeutic approach that focuses on changing negative behaviors through various behavior modification techniques.