Biology Forums - Study Force

Question 1.

According to the above figure, at a price of $6 per DVD, there is a

• shortage of 4000 DVDs per month.

• market equilibrium of 6000 DVDs per month.

• market equilibrium of 4000 DVDs per month.

• surplus of 4000 DVDs per month.

Question 2.

Suppose a change takes place and the new equilibrium is at point A in the above figure. This change could have been caused by

• a reduction in the wages paid to workers in the DVD industry.

• an increase in the per-unit tax on DVDs.

• a decrease in the income of consumers.

• a reduction in the price of DVD players.

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