1 If the position of the demand curve for digital rock music

1. If the position of the demand curve for digital rock music albums has remained unchanged, what can account for a continuing rise in the market clearking price?

2. If the answer explains why album prices have been rising, what can you predict is likely to happen to revenue from albums in the near future?

Solution

1) the quality of the product is the market clearing price when the demand is constant. In order to increase thee and there must be innovation in the demand

2) in the near future the revenue of the market album tends to increase . Due to increase in the prices held by increase in demand to market curve shows an increase