What happens to equilibrium price and quantity for products

Assignment Help Macroeconomics

Reference no: EM13219232

E-books and e-book readers (like Amazon's Kindle or Barnes and Noble's Nook) are complements. E-books and the paper book versions of the same books are substitutes. Assume that copyright holders originally demand a higher price for e-books than for paperback books. Then they relent and allow publishers to sell e-books for a lower fee. Show what happens to the equilibrium price and quantity for each product. Assume that for e-book readers, e-books, and paper books, the original price and quantities are respectively: ($150, 3 million), ($12, 20 million), and ($14, 300 million) Explain how each market is affected. Show what direction these variables will move: bigger or smaller (you can make up exact numbers as long as they go in the right direction). Show all three graphs and make sure you tell me what happens to all three prices and quantities.

Reference no: EM13219232

Questions Cloud

Calculate the diode current : An ideal p-n junction diode has saturation current Is = 3e-15 A. Calculate the diode current.

Make a fundamental financial analysis of the company : Prepare a fundamental financial analysis of the company IBM from its published financial statements of the annual report year 2013, submit an 8- to 10-page paper (excluding appendices, cover page, abstract, and references).

Find nd on n side : Built-in voltage for a Si p-n junction is tested to be 0.6 V, NA = 2 X 10^15 cm^-3 on p side. Find ND on n side. (Assume ni = 1 x 10^10 cm^-3; and k*T/q= 0.026 V)

Will ohsas pel be exceeded : A plant has two identical standby generator units for emergency power use. In the area of the generators, the normal noise level registers 81 dBA on the sound-level meter with the generators turned off. When one generator switches on, the noise le..

What happens to equilibrium price and quantity for products : E-books and the paper book versions of the same books are substitutes. Assume that copyright holders originally demand a higher price for e-books than for paperback books. Then they relent and allow publishers to sell e-books for a lower fee.

Does arrangement violate osha standards for fall protection : the worker's safety harness D-ring is attached to a 12-foot shock absorbing lanyard that is securely fastened to the structure at a point 40 feet above ground level. Does this arrangement violate OSHA standards for fall protection? Explain.

Critical thinking application paper : Describe critical thinking. Provide an example from your personal experience in applying critical thinking: To a work-related decision,

Will the breaker likely be tripped : Calculate current flow and describe its probable path. Will the breaker likely be tripped? Is there a risk of electrocution? If so what factors contribute to the risk?

Develop the pseudo-code : Develop the pseudo-code below for a program that will retrieve 2 bytes (NUM1 and NUM2) from memory, determine which is closest to the numeric value 50, and indicate the result by setting a variable named "CLOSEST" to 1 (if 1st byte is closest) or ..

User Account

All Pages