Change in demand, supply, consumer surplus using a diagram Change in demand, supply and consumer surplus on introduction of new writers’ agreement. Change in demand, supply and producer surplus on introduction of the new writers’ agreement when video rentals and movies are substitute goods. Concept Introduction: Demand Curve: The curve shows how the quantity demanded changes due to change in the price . It is a negatively sloped curve. Supply Curve: The curve shows how the quantity supplied changes due to change in the price. It is a positively sloped curve. Consumer Surplus: It is a difference between the amount that a consumer wants to pay and the real amount which he pays for goods and services. Producer Surplus: It is a difference between the amount that a producer wants to receive and the real amount which he receives for goods and services.

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Chapter 4, Problem 11P

To determine

Change in demand, supply, consumer surplus using a diagram

Change in demand, supply and consumer surplus on introduction of new writers’ agreement.

Change in demand, supply and producer surplus on introduction of the new writers’ agreement when video rentals and movies are substitute goods.

Concept Introduction:

Demand Curve: The curve shows how the quantity demanded changes due to change in the price. It is a negatively sloped curve.

Supply Curve: The curve shows how the quantity supplied changes due to change in the price. It is a positively sloped curve.

Consumer Surplus: It is a difference between the amount that a consumer wants to pay and the real amount which he pays for goods and services.

Producer Surplus: It is a difference between the amount that a producer wants to receive and the real amount which he receives for goods and services.

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