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:

Control Over

The degree of authority or influence one has in directing or managing an object, situation, or the outcome of events.

Intellectual Functioning

The capacity for general cognitive operations, measured by IQ, including reasoning, problem-solving, planning, abstract thinking, and learning.

Social Neglect

A condition where an individual, often a child, receives insufficient social, emotional, and physical care, which can lead to developmental delays and emotional issues.

Emotional Neglect

Emotional neglect occurs when an individual's emotional needs are consistently ignored, minimized, or invalidated by a caregiver or significant other.