8.1 Suppose that the market for video games is competitive with demand function Qd = 130 - 4p + 2Y + 3pm - 2pc, where Qd is the quantity demanded, p is the market price, Y is the monthly budget that an average consumer has available for entertainment, pm is the average price of a movie, and pc is the price of a controller that is required to play these games.

a. Given that Y = $100, pm = $30, and pc = $30, use Excel to calculate quantity demanded for p = $10 to p = $80 in $5 increments. Use Excel’s charting tool to draw the demand curve.

b. Now, Y increases to $120. Recalculate the demand schedule in part

a. Use Excel’s charting tool to draw the new demand curve in the same diagram.

c. Let Y = $100 and pc = $30 again, but let pm increase to $40. Recalculate the demand schedule in part

a. Use Excel’s charting tool to draw the graph of the new demand curve.

d. Let Y = $100, pm = $30, and pc increases to $40.

Recalculate the demand schedule in part a and use Excel to draw the new demand curve.