A. Sunny (UK) Ltd has produced a new DVD player for the UK market. The following

demand and supply data is the result of recent market research.

1. Plot demand and supply curves

2. What is the equilibrium price and quantity?

3. What would be the effect of Sunny charging P80?

4. What would be the effect of charging P180?

5. What is the likely effect of introducing new technology which increases supply at

each price by 40,000 units?

Price

200

180

160

140

120

100

80

Demand

100

120

140

160

180

200

220

Supply

220

200

180

160

140

120

100

​