Consider the detective novel market. Information collected by a survey made it possible to determine the following demand function and supply function:

Qd=502P Qo=2P10

Question 1:

Graphically represent the supply and demand curves of the detective novel market

Question 2:

Determine the market equilibrium for mystery novels.

Consider the following shock: television becomes popular at the expense of the reading of mystery novels.

Question 3:

Does this shock concern the supply of crime novels, the demand or both? Explain.

Question 4:

What is the impact of this shock on the supply and demand curves of crime novels? Explain.

Question 5:

What is the impact of this shock on the balance of the detective novel market?

Consider the following shock: A new printing machine that reduces the cost of printing mystery novels is developed by a Japanese company.

Question 6: Does this shock concern the supply of crime novels, the demand or both? Explain.

Question 7:

What is the impact of this shock on the supply and demand curves of crime novels? Explain. Question 8:

What is the impact of this shock on the balance of the detective novel market?