4.4 Why does the demand curve slope downward? Why does the supply curve slope upward? Given the demand and supply schedules below:
Price (dollars per CD)
Quantity Demanded (per day)
Quantity Supplied (per day)
What is the market equilibrium?
If the price of a CD is set at $6.00, describe the situation in the CD market.
A rise in the number of recording studios increases the quantity of CDs supplied by 75 a day at each price. People download more music from the Internet and the quantity demanded of CDs decreases by 25 a day at each price. With no change in incomes, what is the new equilibrium?
Tags: demand and supply demand curve market equilibrium
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