### Supply and Demand Schedules for PlayStation5 - Digital Edition#### Price in USD | Quantity Demanded | Quantity Supplied- 100 | 900 | 100- 200 | 700 | 150- 300 | 500 | 225- 400 | 300 | 300- 500 | 100 | 400- 600 | 0 | 475---Use the information in the supply and demand schedules above to plot the supply and demand curves, and then answer the following questions.**Question:** Is it possible for the equilibrium price to decrease along the demand curve for PS5 and actually create an increase in total revenue for Sony?**Options:**- a) Yes, because the demand for PS5s is fairly elastic.- b) No, because the demand for PS5s is fairly elastic.- c) Yes, because the demand for PS5s is inelastic.- d) No, because the demand for PS5s is inelastic.**Selection:**- a) Yes, because the demand for PS5s is fairly elastic. ### Analysis:- **Demand Curve:** It shows the relationship between the price of the PS5 and the quantity demanded. As the price increases from $100 to $600, the quantity demanded decreases from 900 to 0.- **Supply Curve:** It illustrates the relationship between the price and the quantity supplied. As the price increases from $100 to $600, the quantity supplied increases from 100 to 475.This information can be used to plot the supply and demand curves which help identify the equilibrium point where the quantity supplied equals the quantity demanded.

We are going to use the concepts such as Market equilibrium, Price elasticity of demand.

Supply and Demand Schedules for PlayStation5 - Digital Edition P in USD Quantity Demanded Quantity Supplied 100 900 100 200 700 150 300 500 225 400 300 300 500 100 400 600 475 Use the information in the supply and demand schedules above to plot the supply and demand curves, and then answer the following questions. Is it possible for the equilibrium price to decrease along the demand curve for PS5 and actually create an increase in total revenue for Sony? Yes, because the demand for PS5S is fairly elastic. No, because the demand for PS5S is fairly elastic. Yes, because the demand for PS5 is inelastic. No, because the demand for PS5 is inelastic. O b O d

Supply and Demand Schedules for PlayStation5 - Digital Edition P in USD Quantity Demanded Quantity Supplied 100 900 100 200 700 150 300 500 225 400 300 300 500 100 400 600 475 Use the information in the supply and demand schedules above to plot the supply and demand curves, and then answer the following questions. Is it possible for the equilibrium price to decrease along the demand curve for PS5 and actually create an increase in total revenue for Sony? Yes, because the demand for PS5S is fairly elastic. No, because the demand for PS5S is fairly elastic. Yes, because the demand for PS5 is inelastic. No, because the demand for PS5 is inelastic. O b O d

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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