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:

Reverse Discrimination

The act of giving preference to members of historically disadvantaged groups to the extent that it results in unfair disadvantage to those not in such groups.

European Americans

Individuals in the United States who trace their ancestry to Europe.

Pluralism

The coexistence of multiple groups or cultures within a society, recognizing and respecting diversity.

Racial And Ethnic Culture

The distinctive shared traditions, practices, and values that characterize a group of people based on their racial or ethnic identities.