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  • Demand and Supply, price mechanism, elasticity and market structures

Click to watch the short video below and then answer the questions:

  • Using demand and supply analysis, explain what should happen to the price of CDs after 2000. Use the functions of the price mechanism to explain your answer

  • Discuss the cross elasticity of demand for physical music and digital music

  • Evaluate the impact on KKR’s profitability of buying music catalogues from the likes of One Republic and The Weeknd. Use a diagram in your answer

  • Given the information provided in the video, is the music industry a contestable market?

Gavin Simpson and Pete Clift, Economics In Ten podcast

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