Purchase Solution

Price and Quantity - DVD Players

Not what you're looking for?

Ask Custom Question

What do you think will happen to the price and quantity of DVD players if

a. The availability of good movies to play on DVD players increases?
b. Personal income increases?
c. The price of inputs used to produce DVD players decreases?
d. Ticket prices at local movie theaters decline substantially?

Purchase this Solution
Solution Summary

This solution goes over 4 different changes to the DVD player industry, explaining the consequences of each on price and quantity.

Solution Preview

You can draw a supply and demand curve for this. Draw and x in a quarter of a box on a page. demand is the line that goes from the bottom left to the top right and the other one is the supply curve. Price is a line that goes from the left to the right horizontally wherever the two lines intercept.

a. The demand line would go up moving the price line up as well (where the supply and demand lines meet) since now we have more movies and the demand for dvd players increases. Therefore price increases.

b. Increase in personal income will give consumers more excess income to spend ...

Purchase this Solution
Free BrainMass Quizzes
Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

View More Free Quizzes
Related BrainMass Solutions

  • Managerial Economics and Organizational Architecture for DVD's

    55001 Managerial Economics and Organizational Architecture What do you think will happen to the price and quantity of DVD players if a. The availability of good movies to play on DVD players increases? b. Personal income increases? c.

  • Changes in price and effect on supply and demand

    As the P of DVD players increase the quantity demanded of DVD players decreases, the fewer DVD players the fewer DVDs demanded to use on those DVD players. b. I would say that they are wrong.

  • supply and demand forces

    Estimated market demand for DVDs in the European market (EU) is given by Qd = 1400 - 125P + 20N, Where P is the price of a DVD in Euros, Q is quantity measured in thousands of DVDs, and N is the number of DVD players sold to date.

  • Analyzing demand and supply behavior in the given situations

    Demand curve is negatively slopped i.e. if price of good increases, quantity demanded should decrease. Since there is increase in prices of DVD players, quantity demanded should decrease.

  • Cross Price Elasticity

    If firm A manufactures DVD players and firm B manufactures DVD discs, then a price rise in DVD players would result in a fall in demand for DVD discs - the two goods are complementary.

  • Discussion of Elasticity

    (c) Technical improvements in DVD players causes the price of a DVD to fall to $400, with the price of VCRs and income unchanged. (d) All of the events described in parts 1-3 occur simultaneously.

  • Demand Elasticity

    This indicates that DVD players have a price elasticity, and as the price of the DVD players increased, its affordability decreased and thus the demand for DVD players decreased. b.

  • MC: Calculating Annual Number of VCRs Sold

    397128 Predict The Annual Number of VCRs Sold Suppose that the current market price of VCRs is $300, that average consumer disposable income is $30,000, and that the price of DVD players (a substitute for VCRs) is $500.

  • Pure float exchange rate, degree of pass through

    Sony of Japan produces DVD players and exports them to the United States. Last year the exchange rate was ¥130/$ and Sony charged $150 per DVD player. Currently the spot exchange rate is ¥110/$ and Sony is charging $170 per DVD player.

View More Related Solutions