Unit 1: Disequilibrium and Substitutes in the games console market

This year's must-have Christmas gift, the Nintendo Wii console, is in short supply across the UK according to this BBC clip and associated article
< http://www.bbc.co.uk/mediaselector/check/player/nol/newsid_7090000/newsid_7098500?redirect=7098525.stm&news=1&nbwm=1&bbram=1&bbwm=1&nbram=1&asb=1 >

http://news.bbc.co.uk/1/hi/technology/7094069.stm

a) Using economic language, how would you describe the supply of the Nintendo Wii?
b) Using a diagram, explain how the market for the Wii is in a disequilibrium
c) What has begun to happen to restore equilibrium in the market?

The likely winner resulting from this shortage is Sony according to this BBC article

http://news.bbc.co.uk/1/hi/technology/7095976.stm

d) Why have Sony sales increased?
e) Using your knowldge of the video games market, dicuss the extent to which the Wii, PS3 and Xbox 360 are substitute products