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The booth is simply used for holding all the DJ's gear, which could include turntables, CD players, a mixer, an effects unit, a laptop, booth monitors (speakers), etc.
Turntables are used to play vinyl records. The DJ's job is to mix records using the turntables and the mixer. This can be something as simple as matching beats and slowly fading between records, or it could be as complex as turntablism, scratching, layering, performing mashups, etc. The same can be accomplished with professional CD players (Pioneer CDJs, e.g.), a midi controller, and/or a laptop.
With the right equipment it is possible to perform "live" and create music on the spot, but this is not what a DJ typically does. Typically, a DJ is mixing records/CDs/mp3s created by different producers.
*sigh* Did I just fall for an alt? 
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