Sony Corporation

Sony Corporation   is   a multinational conglomerate corporation headquartered in Japan, Tokyo, Minato and one of the world's largest media conglomerates with revenue exceeding US$99.1 billion (as of 2008).   Blue Ray is Sony latest conglomerate.   Blue Ray is the next generation of the optical disc, which offers an increase in storage capacity than the tradition DVDs.     This new format uses a blue-violet laser instead of the red laser on the tradition DVD.   I will try to explain what will happen to the supply, demand and price of the product in the short-term and long-term.   In my research I found that the market for blue ray demand was expected to exceed supply.   The demand from last year was expected to reach 43 million discs, but production only had the capacity to produce 60 to 70 percent.   When the supply equal and/or exceed the demand then prices will go down.   When Sony entry in to the blue ray market the price was high and it caused the demand curve to shift to the left.   When Sony started to make a profit that is when the demand started to increase.  
In the short-term, Sony is making a positive economic profit by lowering the price on the purchase of a blue ray player.   By lowering the blue ray disc player, it caused the demand for blue ray disc to increase.   Consumer are in a mind set right now because of the recession that we are in that they are not buying expensive items such as the blue ray disc player.   So, the equilibrium price will not be affected because in the short-term even though price is lower the demand will decrease or it will stay constant if consumers continue to watch their spending.
In the long run, the consumers are expected to benefit from not having to choose which brand to purchase.   Sony has become the leader in the market, but as new brands come available it causes an increase in the supply and demand.   A new brand also causes these products into a monopolistically competitive market to earn a profit.   This exists because there...