Demand and Supply

Nowadays, a lot of pirated disc appear in our country especially at night market, beside shop lots and even selling at the roadside. Since the pirated disc enter our market, the genuine disc seller or shop starts plummet.

In addition, those pirated disc seller are keep increasing, hence, most of those consumers are not willing to buy genuine disc anymore because the price of pirated discs are exactly cheaper than the genuine discs. If the price of genuine disc falls, quantity demanded of genuine disc rises. The demand curve shifts to the right.

                Even so, retailer can do promotional to attract more consumers to buy genuine disc. So that, quantity demanded of genuine disc will increase as consumers are able to purchase. When the sale of genuine disc is high, selling is profitable and so the amount supplied is large.

  In the developing society, a lot of people watch or download drama through Internet as it is free of charge. For now, Internet is substitute genuine disc of drama and pirated disc. Thus, the sale of genuine disc and pirated disc are low; business is less profitable so the firms will produce less. The firms have to hire less workers and machines that it will cause them unemployment and the number of employed will rise in our country. Based on the diagram, supply curve shifts to the left.