--%>
Assignment Help - homework help

Market Adjustments in outputs and average prices

Outputs and average prices for CDs and DVDs both rose throughout 1999 to 2000 (just before file sharing became ordinary), implying such that: (1) supply of prerecorded music should have grown. (2) law of demand does not apply to music. (3) demand for prerecorded music grew. (4) giant music companies manipulated consumers less effectively. (5) market for DVDs and CDs both are dynamically unstable.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

   Related Questions in Microeconomics

  • Q : Labor Contracts of Check-off Provisions

    When a collective bargaining contract comprises a ‘check-off provision’: (1) Union workers can be fired when they don’t meet the production quotas. (2) Firms gather the union dues through deducting them from the paychecks. (3) Workers are needed to d

    		•
  • Q : Higher value for the Gini index A

    A higher value for Gini index tends to be related with: (w) decreases in the equality of the distribution of income or wealth. (x) decreases in the population’s total amount of income or wealth  (y) reduced overall curvature of the Lorenz c

    		•
  • Q : Statement of Demand Prices I have a

    I have a problem in economics on Statement of Demand Prices. Please help me in the following question. Demand prices are stated as the relative: (1) Prices sellers charge for goods whether we purchase or not. (2) Values that individual subjectively put on having a bit

    		•
  • Q : Determine price when quantity demand

    If the demand for a good is price elastic, in that case the percentage change in quantity demanded into response to a specified change within price is: (1) greater than the percentage change in price. (2) positively related to the cha

    		•
  • Q : Giving wholesale price per dozen by

    When Rose Garden Wholesalers has a typical type cost structure of rose farms within this purely competitive industry, into the long run new competitors would most likely enter the market providing the wholesale price

    		•
  • Q : Wages-Portion of costs Assume that a

    Assume that a firm with market power in output market wishes to grow up and that hiring more workers needs it to increase wages 8% for all the workers. Output prices will most likely: (1) Increase 8% to cover the wage raise. (2) Increase less than 8% as wages are only

    		•
  • Q : Closed Shops problems Can someone

    Can someone please help me in finding out the accurate answer from the following question. Firms which agreed to hire only workers who were already the union members would be operating: (1) Agency shops. (2) Bilateral monopolies. (

    		•
  • Q : Labor adds uniformly to total revenue

    The entire profit maximizing firm will appoint more labor up to the point where: (i) Average physical product of the labor equivalents the nominal wage. (ii) Last unit of the labor adds up equally to net revenue and net cost. (iii) Marginal product of the labor is at

    		•
  • Q : Emerging by price discrimination

    Oligopolies are least expected to emerge due to: (1) economies of scale. (2) price discrimination. (3) strategic barriers to entry. (4) mergers. (5) legal barriers to entry. Can anybody suggest me the proper explan

    		•
  • Q : Kinked Demand by increasing price In

    In this kinked demand curve model as in demonstrated, when this firm operates at point a and increases its price from P2 to P3 and its rival firms respond by increasing their prices, in that case this firm will move from point a

    		•