Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. What is the equilibrium price and the equilibrium quantity in this market? Suppose the current price is $12.00
What is the quantity of Blu-rays sold? Explain. Is there a shortage or a surplus? How big is it? Explain.
The equilibrium price is $11.50. The equilibrium quantity is 30 million disks per month. The quantity sold is 20 million disks per month. Although at $12.00 suppliers want to sell 45 million disks, the buyers want to buy only 20 million and so 25 million disks won't be sold. Since the quantity supplied, 45 million disks, is greater than the quantity demanded, 20 million, there is a surplus, 25 million disks.
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A) P1 B) E2 C) E3 D) E1
When a nation begins to import a good,
a. the domestic price of that good will fall b. domestic consumers are harmed c. the domestic price of that good will rise d. domestic producers benefit e. the quantity produced domestically will rise