Graph the supply and demand curves for rap music cd

Question

Task: Demand and Supply Schedule for Rap Music CDs

Price	Quantity Demanded	Quantity Supplied
10	70 million	20 million
11	65  million	40 million
12	60 million	60 million
13	55 million	80 million
14	50 million	100 million

Question 1: Using the given supply and demand schedule above, graph the supply and demand curves for rap music CDs.  

Question 2: What are the equilibrium price and quantity? In other words, where is Q_d = Q_s?  What is the quantity that matches in both columns and what is the price at that point?

Question 3: At a price of $13, is there is shortage or surplus? How much is the shortage or surplus?

Question 4: Show graphically what happens to the market for rap music CDs if the price of CD players increases. What are the new equilibrium price and quantity? 

Suppose that the price of CD players increases.  CDs and CD players are goods typically consumed together, so they are called _________. 

If the price of CD players increases, people will buy fewer CD players.  That’s the Law of Demand.  However, they will also change their entire demand for rap music CDs as well.  Since they’ll be buying fewer CD players, will they need more or fewer CDs to play on the CD players they’re not buying?    _______  (more or fewer?)

Let’s suppose that the new demand schedule looks like this:

Price	Quantity Demanded	Quantity Supplied
10	45 million	20 million
11	40  million	40 million
12	35 million	60 million
13	30 million	80 million
14	25 million	100 million

What is the new equilibrium?  The new equilibrium quantity, where Qd = Qs,  is  ______ and the new equilibrium price, the price at which Qd = Qs, is $_________

Plot the new demand curve with the old one.  Is the new one to the left or the right of the old one?  __________ (left or right?)

If the new demand curve is on the right side of the old one, then demand has increased.  If the new demand curve is on the left side of the old one, then demand has decreased.  Which is it?  Did demand for rap music CDs increase or decrease?  _________

Finally, how did the equilibrium price and quantity change in direction? Did they increase or decrease? Equilibrium price of rap music CDs ______________ (increased or decreased?) after the price of the CD players increased. Equilibrium quantity of rap music CDs _______________ (increased or decreased?) after the price of the CD players increased.