Case Analysis : School Of Law And Business

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Assignment Cover Sheet Student Name: Student Number: School of Law and Business Charles Darwin University Casuarina NT 0909 Phone: (08) 8946 6830 Phan Huong Giang Truong 271670 Unit Name: Unit Code: Principles of Economics CME101 Lecturers Name: Venkat Pechalliah Assessment Title Case Analysis Semester: Year: Assignment 1 (select assignment number) 1 2014 Due Date (dd/mm/yyyy): Lodgement Date (dd/mm/yyyy): Applied for Extension: (dd/mm/yyyy) 13/12/2014 13/12/2014 0 N/A 1 NO 0 YES – to Lodgement Locations: (refer to specific lodgement requirements as set out by the lecturer) DO NOT LODGE BY FAX nor EMAIL nor at LECTURER’S OFFICE The assignment must be lodged online via the Learnline Assignment…show more content…
*By submitting this assignment and cover sheet electronically, in whatever form, you are deemed to have made the declaration set out above Office use only Assessor use only Date Received: Please place grade here D…..../M…..../Y…..... Date Sent to Lecturer: D…..../M…..../Y…..... Comments: A) Digital and smart television and movies are complementary goods as people can access movies through TV. With the development of various mobile networks such as Optus and Telestra, it is easier to access movie through smart TV. Meanwhile, TV movies and cinema movies are subtitue goods. Therefore, when there is an increase of people accessing TV, the demand for TV movies increases. The above diagram shows that the demand curve of cinema shifts to the left because of non-price factor, the increase of TV movies. In other words, the demand for cinemas decreases. When demand for cinemas decreases, the price and quantity demanded also decrease which means changing from P0 and Q0 to P1 and Q1 so that supply and demand curves still meet at equilibrium. Unless the price is changed, the quantity demanded decreases from Q0 to Q2; however, this will create a surplus. B) With the changed demand, the service cost of cinema reduced with the help of technological advances leads to the shift of the supply curve to the right because technological advances are considered as a determinant
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