Original to the new equilibrium, Business Economics

ITunes is rapidly dominating the global market for music sale. Assume that the download  price for Dance artist Calvin Harris's single "Feel So Close" is $1.19 and the number of  downloads per day world-wide is 3000. What will happen to the market for this single if the
following events occur:

(i) The population of Dance music fans decreases AND productivity in music production increases?

(ii) Dance fans switches away from Dance music to R&B music AND the price of MP3 players increases

(iii) The number of other Dance singles decreases on iTunes AND income increases

(iv) The artist is rumoured to have died AND the download price of Paul Simon's "You can call me Al" decreases substantially.

Each event (i, ii, iii and iv) occurs independently (ceteris paribus). For each of the following  situations, explain what will happen to the equilibrium price and the equilibrium quantity for the download of "Feel So Close" on iTunes. For each part, you must:

I) draw an appropriately labeled diagram,

II) show the adjustment process from the original to the new equilibrium, and

III) a detailed written explanation of this adjustment process.

Posted Date: 3/14/2013 1:30:15 AM | Location : United States







Related Discussions:- Original to the new equilibrium, Assignment Help, Ask Question on Original to the new equilibrium, Get Answer, Expert's Help, Original to the new equilibrium Discussions

Write discussion on Original to the new equilibrium
Your posts are moderated
Related Questions
critically analyze the applicability of the Marris model in the beverage manufacturing company

need assistance

2. You recommend spending $10,000 on equipment that will increase sales of your product by $1000 a year and reduce annual operating costs by $800. The equipment has 10-year lifetim

rice donation

Calculate the "weights" for the long-term financing sources: Total Stockholder Equity, Long Term Debt, and Preferred Stock (if there is any of this).  Do this in two ways: (a

Define the difference between configuration management and change control and the relationship among them. Change control is the management of the project scope. Configuration

S M Construction has been awarded a contract to build a new manufacturing plant just outside Cardiff. The activity on arrow table below gives data on the activities involved in the

How is the informal sector, urban modern sectors connected? Several urban regions into developing countries are dualistic as: current formal activity exists side by side along

What are the predictions of Lewis? For Lewis, Harrod Domar is right to emphasise the task of savings and investment although structural change and a new industrial sector are

QUESTION (a) Explain the 3 different ways of calculating national income. (b) Does the National Income figure accurately reflect the living standard of a population? Discuss