Suppose the market for Blu-rays has the demand and supply schedules shown in the table above. Suppose a decrease in the price of a Blu-ray player increases the quantity of disks demanded at each price by 20 million
What are the new equilibrium price and equilibrium quantity of Blu-rays?
The initial equilibrium price is $11.50 and the initial equilibrium quantity is 30 million disks per month. The decrease in the price of a Blu-ray player increases the demand by 25 million disks. As a result, the equilibrium price rises to $12.00 and the equilibrium quantity increases to 45 million disks.
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A decrease in demand with the supply held constant leads to:
a. an increased equilibrium price and an increased equilibrium quantity. b. a decreased equilibrium price and a decreased equilibrium quantity. c. a decreased equilibrium price and an increased equilibrium quantity. d. an increased equilibrium price and a decreased equilibrium quantity.
Suppose the accompanying figure shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist.
At this monopolist's profit-maximizing level of output, consumer surplus is ________.
A. $9,000 B. $4,500 C. $2,000 D. $4,000