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Microeconomics Assignment - Supply & Demand

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Added on  2020-10-22

Microeconomics Assignment - Supply & Demand

   Added on 2020-10-22

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MICROECONOMICS -SUPPLY & DEMAND1
Microeconomics Assignment - Supply & Demand_1
TABLE OF CONTENTSISSUES ...........................................................................................................................................3ANALYSIS......................................................................................................................................3POSITION.......................................................................................................................................4CRITIQUE.......................................................................................................................................1REFERENCES................................................................................................................................11
Microeconomics Assignment - Supply & Demand_2
ISSUES Peer to peer file sharing is normal for people who want to download music video anddigital files. All over the world, this type of file sharing becomes popular as people can easilyshare it with personal computers. Many people do not know that it is illegal because most of thevideos and songs are protected by law (Oberholzer-Gee and Strumpf, 2016). On the other side,there are people who think that sharing music is harmless and it impact on the economy. Thereare less number of people who are purchasing CD’S now as because they can easily download itfrom websites and peer-to-peer network. It leads to put an effect on the economy of the country.As economic studies have analyzed that sales are reduced because of the arrival of Napsterwhich is one of the peer to peer sharing program who reduce sales approximately $6 billion infew years. Apart from this, there are many people who think that they suffer from loss due topeer to peer sharing but it has affected the entire music industry. On the other side, there aresome ethical issues related to peer to peer sharing as it leads to affect the law of society. (Yang,Wang and Mourali, 2015). As per the code of ethics, it is strongly prohibited to download musicwhich is copyright protected. Along with this, it is completely illegal to steal music of other artistwithout their permission. Due to this reason artist, much loose monetary compensation andmusic companies can suffer from loss. It also leads to create negative motivation to honest musicbuyers. ANALYSISThere is a huge negative impact of peer-to-peer file sharing on record sales. Theargument of Liebiwtiz is based on the microeconomic theory because it identified 4 differenteffects of file sharing which can impact the record sales that are exposure, network effect,sampling, substitution and indirect appropriability (Belk, 2014). Impact of these entire factors areinsignificant, if other consequence is positively interrelated with recorded sales. Along with this,there are many other factors which can affect record sales but they are cannot be explained. Substitutional effect: The copy of music, videos and other is preserved as a substitute for theoriginal. In case if the copy is identical or similar to the quality, and the cost of producing copy islow, the copy for the price of Zero dominates the original price positively. Hence it can be statedthat unauthorised downloading of the file or music which is copyrighted then it can be substitute2
Microeconomics Assignment - Supply & Demand_3

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