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PROBLEM: With the aid of supply and demand diagrams (you need an explicit diagram for each case), show explain prices and how and why we would expect and quantities to change in the market for Compact Discs (CDs) in each of the following situations when:
(a) Technical improvements lead to a fall in the cost of producing CDs.
(b) Technical improvements lead to a fall in the cost of producing MP3 players.
(c) Technical improvements lead to a fall in the cost of producing CD-players.
(d) Streaming music services, such as Spotify, AccuRadio, and Grooveshark, etc. become widely available
(e) Congress passes laws making streaming music services, such as Spotify, AccuRadio, and Grooveshark, etc. illegal.
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