Draw a diagram of the market for DVDs, showing the demand and supply curves and the equilibrium price and quantity. The number of DVD players possessed by consumers is increasing. Illustrate on your diagram. Consumers like the sound and picture quality of DVDs. Again, illustrate this on your diagram. .
Movie producers are increasingly willing to issue films in DVD format.
Show the implications of this on your diagram. The price of DVDs is expected to fall over the next few years. DVD consumers buy many more DVDs than video consumers buy videos. Refer to the determinants of demand.