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) 5.00 300 100 6.00 250 150 7.00 200 200 8.00 150 250 9.00 100 300   What is the market equilibrium?   If the price of CD is $6.00, describe the situation in the CD market. Explain how market equilibrium is restored.   A rise in incomes increases the quantity of CDs demanded by 100 a day at each price. What is the new equilibrium and how does the market adjust?   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 and how does the market adjust?

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter8: Understanding Markets And Industry Changes
Section: Chapter Questions
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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)

5.00

300

100

6.00

250

150

7.00

200

200

8.00

150

250

9.00

100

300

 

What is the market equilibrium?

 

If the price of CD is $6.00, describe the situation in the CD market. Explain how market equilibrium is restored.

 

A rise in incomes increases the quantity of CDs demanded by 100 a day at each price. What is the new equilibrium and how does the market adjust?

 

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 and how does the market adjust?



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