a) Draw the demand and supply curve based on the above figures and determine the equilibrium price and quantity.

b) Calculate the price elasticity of demand.

c) What would be the likely market impact if:

i) government imposed a maximum price of Euro 20?

ii) government imposed a maximum price of Euro 10?

iii) government imposed a minimum price of Euro 10?

d) Under which circumstance (maximum price or minimum price) would there be a surplus of DVDs?

e) When binding maximum prices are imposed to benefit buyers, will this guarantee that all buyers will be able to buy the product? Give reasons for your answers