Any kind of graph can be used for discrete data.
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Yes.
A pie chart :) or a bar graph.
yes
Yes it is. Discrete data is something that's set. Like say you were making a line graph about renting bikes. You can only rent whole bikes there is nothing in between. You shouldn't connect points on a line graph with discrete data but some cases can be argued. Continuous data is usually a measurement that could change like time.
A line graph is not a good way to represent the data as the number of CDs is a continuous variable, but the artists are a discrete, categoric variable. A line graph should be used when both variables are continuous. A bar chart or bar graph should be used when one variable is continuous and one is discrete.