Assume that the launch of Microsoft Xbox 360 moved the demand curve for Sony PlayStation 2 games from D0 to D1 throughout similar period if new game designers enter into this market and hence supplies of PlayStation 2 games shifted S0 to S1. The market equilibrium: (1) Price would rise from $10 per game to $25 per game. (2) Quantity would rise roughly from 14 million per week to roughly 16 million per week. (3) Quantity and price would both reduce. (4) Price would rise since of shortages in this market in short run.
Can someone help me in getting through this problem.