Please draw the new lines over the image posted, both demand negative and supply flexible line. Part B:Note:-Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.Answer completely and accurate answer.Rest assured, you will receive an upvote if the answer is accurate. Suppose a firm is currently producing 900 computers per week and charging a price of $1,200 per computer.a. Show how the firm will respond to a negative demand shock if prices are flexible.Instructions: Use the tool provided 'S Flexible Prices' to draw the supply curve when prices are flexible. Then use the toolprovided 'D Negative Shock' to draw the shift in the aggregate demand curve when there is a negative demand shock.Price$1,200Computer Market900DemandComputers per weekToolsOS Flexible Pric D Negative Sh(i Price$1,200900DemandComputers per weekS Flexible Pric D Negative Shb. Generalizing from the computer market specifically to the economy as a whole, what will happen when this negativedemand shock occurs across the economy's many markets?O Real GDP will stay the same, prices will decrease, and unemployment will stay the same.O Real GDP will decrease, prices will increase, and unemployment will increase.O Real GDP will increase, prices will increase, and unemployment will decrease.O Real GDP will stay the same, prices will decrease, and unemployment will increase.

A demand shock is an abrupt, unforeseen incident that, generally momentarily, causes the demand for…

Answered: a. Show how the firm will respond to a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please draw the new lines over the image posted, both demand negative and supply flexible line.

Part B:

Note:-

Please avoid using ChatGPT and refrain from providing handwritten solutions; otherwise, I will definitely give a downvote. Also, be mindful of plagiarism.

Answer completely and accurate answer.

Rest assured, you will receive an upvote if the answer is accurate.

Suppose a firm is currently producing 900 computers per week and charging a price of $1,200 per computer.
a. Show how the firm will respond to a negative demand shock if prices are flexible.
Instructions: Use the tool provided 'S Flexible Prices' to draw the supply curve when prices are flexible. Then use the tool
provided 'D Negative Shock' to draw the shift in the aggregate demand curve when there is a negative demand shock.
Price
$1,200
Computer Market
900
Demand
Computers per week
Tools
O
S Flexible Pric D Negative Sh
(i

Price
$1,200
900
Demand
Computers per week
S Flexible Pric D Negative Sh
b. Generalizing from the computer market specifically to the economy as a whole, what will happen when this negative
demand shock occurs across the economy's many markets?
O Real GDP will stay the same, prices will decrease, and unemployment will stay the same.
O Real GDP will decrease, prices will increase, and unemployment will increase.
O Real GDP will increase, prices will increase, and unemployment will decrease.
O Real GDP will stay the same, prices will decrease, and unemployment will increase.

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