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?
I can seem to figure out the last two questions I bolded:
Why does the demand curve slope downward? Why does the supply curve slope upward? Given the demand and supply schedules below:
|
|
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
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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