I. The demand and supply curves of the market for DVD are as follow
Qd = 60-2P and Qs= 3P + 5
a. Find the equilibrium price and the equilibrium quantity?
b. What happens if the market price of a DVD rises to $30
c. What happens in the short run if the price of DVR (a substitute to DVD) doubles? Does it affect the price of DVD
d. What would happen in the long run? Does it affect the price of DVD?