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Solved Assignment on Microeconomics PDF

Added on - 17 Jun 2021

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Running head: MICROECONOMICSMicroeconomicsName of the studentName of the universityAuthor Note
1MICROECONOMICSTable of ContentsIssues:.........................................................................................................................................2Analysis:.....................................................................................................................................2Position:......................................................................................................................................3Critique:......................................................................................................................................5References:.................................................................................................................................6
2MICROECONOMICSIssues:Now a days, people receive their desired music through per-to-peer (P2P) file sharing.However, this P2P technology has become a debatable issue among economists and musicindustries regarding its impact on recorded music industry (Demers, Piereson, Cianci andWelsh 2018). Based on some economists, this file sharing technology has adversely affectedthe revenue of this recorded music industry while, according to some other economists thistechnology has increased the revenue of this concerned industry through buying online musicalbums. However, this P2P file sharing technology has practiced illegal activities byproviding free downloaded songs or at comparatively lower costs than common market. Inthis context, the concept of copyright violation has occurred (Danaher, Smith and Telang2017). Most of the economists have intended to establish the impact of file sharing onrecorded music industry though due to insufficient data, they have remained unable toimplement any statistical analysis. Hence, it has also become difficult for music industries toanalyse the trend of demand and supply of their products within market as people havebought them from other sources (Waldfogel 2017). Moreover, due to this lack of analysis,many music-selling stores have closed their business operations. Hence, the impact of P2Pfile sharing on music recording industry can be analysed with the help of demand and supplyconcepts along with producer and consumer surplus through considering some ethics relatedto this industry.Analysis:The concept of fundamental demand and supply operates within the music industry,where price plays a significant role. People demand music album by higher amount whileprices of those products remain low and the opposite situation occurs when prices of thosemusic album goes down. However, demand for music also depends on some other factors, forinstance, tastes, preferences and income of consumer and prices of related commodities(Herings, Peeters and Yang 2018). For recorded music, its relative commodities are the samemusic albums available on the online website with comparatively lower prices. Moreover, itcan be considered that people like to purchase online music without considering its quality ofmusic. Hence, basic concept regarding the law of demand can be seen. The chief ethicalissue, which leads the demand for recorded music in this way, is the amount of price (Skog,Wimelius and Sandberg 2018). As people get same album with different prices, they chose topurchase the one, which has comparatively lower price without considering that whether thisprocess is illegal, or not. To measure the demand for illegal music, some assumptions can beconsidered as well. For instance, some people like to download music freely or with lower
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