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
Question: (a) Describe the meaning of Business Process Outsourcing (BPO). (b) BPO deals mainly with non-core processes of an organization. Describe four of such type of pr

Question: (a) Assume that a market is in equilibrium and all investors agree that the return on any diversified portfolio P is equal to R P = a p + b p 1 F 1 + bp 2 F 2

Examine the factors that determine the price of computers in a free market. In recent years, the price of personal computers has continued to fall even in the face of increasing de

Question 1: (a) Explain, giving examples, the law of diminishing returns, clearly bringing out the relationship between cost curves and product curves in the short run. (

Talltree is considering a $12m series B investment in Newco for CP with $12m FV or converting to 5m shares of common. The other investors are the founders, who have 10m shares of c

How do economists group countries at various stages of development? There are three major forms of classifications: • IMF: Developing and industrial, transitional economi

Question 1: What are the main predictions of the Capital Asset Pricing Model (CAPM)? Discuss the role and significance of the assumptions needed to obtain the predictions.

What are the problems of Environment in Economic Growth? Environment Problem: Economic growth can damage the environment by: • Negative externalities as an example waste thr

assignment given to me about the methods of pricing of a product with five examples

What are the advantages to the project manager in giving regular progress reports to the project team members? People working onto a project as to have an understanding of how