In the past, Games Unlimited sold copies of its trademark computer game on DVD. It faced the inverse demand function,

p=120Q,

and had the cost function,

C=200+20Q.

It recently switched to selling its game online via the internet. Demand was unchanged, but its cost function changed as fixed cost rose to

400,

while marginal cost dropped to zero:

C=400.

Assuming that Games Unlimited maximizes profit, what effect did moving from DVD to internet distribution have on price, quantity, consumer surplus, and profit?

1. Moving from DVD to internet distribution ________ (decreases/increases) quantity by

___________ units. (Enter your response using an integer.)

2. Moving from DVD to internet distribution ________ (decreases/increases) price by

___________ units. (Enter your response using an integer.)

3. With the change to internet distribution, consumer surplus ________ (decreases/increases) by $________ (Enter your response using an integer.)

4. Moving from DVD to internet distribution ___________ (decreases/increases) profit by $________________(Enter your response using an integer.)