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?

View Complete Question

Related Questions in Microeconomics

Q : More unit gains marginal revenue by

A firm which can sell each and every unit of its production at a price of $200 and that sells 500 more units gains marginal revenue by the additional units of: (w) $500,000. (x) $100,000. (y) $200. (z) $10,000. I n

Q : When is minimum wage legislation LEAST

Minimum wage legislation is LEAST probable to stimulate: (w) higher teenage unemployment. (x) raised racial discrimination. (y) surpluses of unskilled workers. (z) decreased wage incomes for unskilled workers who keep their jobs.

Q : Division of labor advantages for workers

The advantages from the division of labor are improved as workers: (1) Are protected by the barriers which limit the international trade. (2) Who each recognize all facets of production gain an enhanced understanding of the whole project. (3) Constant

Q : Saving in Negatively Investment Saving

Saving is positively related to and investment is negatively related to: (1) marginal benefits and marginal costs. (2) real interest rates. (3) returns onto alternatives. (4) expectations. (5) government surpluses and deficits.

Q : Family Allowance Plans for Payments

Family Allowance Plans [FAPs] as like those common in many European nations give: (w) incentives for couples to live together without marriage due to the punitive tax rates. (x) payments that are roughly enough to feed and clothe each child in a famil

Q : Average variable cost at price of

A monopoly facing a demand curve which has segments higher than its average variable cost curve that sets price: (w) equal to MR. (x) equal to marginal costs [MC]. (y) from the market demand curve after finding the quantity where is m

Q : Purchasing power of Income Effects

Whenever the price increases for a good that you enjoy extremely and purchase regularly: (i) The purchasing power of your income is reduced. (2) You adjust more rapidly than when the good was insignificant to you. (3) Your substitution effect is over-powered by an inc

Q : Example of Speculation Throughout

Throughout periods while the activities of speculators raise the volatility and average level of prices, classical speculators are most probable to: (1) gain profits by buying high and selling low. (2) reduces the risks to other firms of doing busines

Q : Distribution of income-inequitable

Reliance on private demands and supplies to allocate resources and goods is least specific to yield an economically inefficient solution when: (i) producers have significant monopoly power. (ii) a good is nonrival and

Q : Estimate monthly total cost by

When Robomatic Corporation maximizes profit within its production of RoboMaids, so its monthly total costs will be around: (i) $40 million. (ii) $65 million. (iii) $90 million. (iv) $105 million. (v) $130 million.

Discover Q & A

Leading Solution Library

Avail More Than 1416121 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1950976
Asked

3,689

Active Tutors

1416121

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment