only Iv please Illustrate and explain how the shortage of chips will impact the market for (i)chips and (ii) motor vehicles.i.ii.Is demand for (i) chips and (ii) motor vehicles elastic or price inelastic? Explainyour reasoning.iii.Discuss one factor EACH that you think influence elasticity of demand andsupply for chips. Provide examplesExplain how revenue for the producers of (i) chips and (ii) motor vehicles will beimpacted by the shortage in chips.iv. Samsung Electronics Co. Ltd said on Thursday it expects chip shortages to affect chipdemand from some customers in the final three months of the year, after reporting itshighest quarterly profit in three years. The warning comes as producers of goods fromtelevisions to cars have faced a host of supply chain issues ranging from a shortage oflogic chip parts, manpower shortages, logistics snarls, and delays at parts plants due topower cuts in China.Samsung said demand for server DRAM chips, which temporarily save data, andNAND flash chips that serve the data storage market, is expected to stay robust in thefourth quarter due to expansion of data Centre investments. Although supply chainissues could limit demand from some mobile chip customers in the fourth quarter,demand for server and personal computer chips is expected to be robust in 2022 despiteuncertainties, it said.Analysts expect Samsung's fourthquarter earnings to be level or below its third quarterresult, largely depending on memory chip prices. Smaller rival SK Hynix on Tuesdaystruck a more optimistic note than U.S. peers and forecast steady demand for memorychips.

Given, Samsung Electronics expects a shortage in chips which may effect the demand for some…

Answered: Explain how revenue for the producers…

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Explain how revenue for the producers of (i) chips and (ii) motor vehicles will be impacted by the shortage in chips.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

only Iv please

Illustrate and explain how the shortage of chips will impact the market for (i)
chips and (ii) motor vehicles.
i.
ii.
Is demand for (i) chips and (ii) motor vehicles elastic or price inelastic? Explain
your reasoning.
iii.
Discuss one factor EACH that you think influence elasticity of demand and
supply for chips. Provide examples
Explain how revenue for the producers of (i) chips and (ii) motor vehicles will be
impacted by the shortage in chips.
iv.

Samsung Electronics Co. Ltd said on Thursday it expects chip shortages to affect chip
demand from some customers in the final three months of the year, after reporting its
highest quarterly profit in three years. The warning comes as producers of goods from
televisions to cars have faced a host of supply chain issues ranging from a shortage of
logic chip parts, manpower shortages, logistics snarls, and delays at parts plants due to
power cuts in China.
Samsung said demand for server DRAM chips, which temporarily save data, and
NAND flash chips that serve the data storage market, is expected to stay robust in the
fourth quarter due to expansion of data Centre investments. Although supply chain
issues could limit demand from some mobile chip customers in the fourth quarter,
demand for server and personal computer chips is expected to be robust in 2022 despite
uncertainties, it said.
Analysts expect Samsung's fourthquarter earnings to be level or below its third quarter
result, largely depending on memory chip prices. Smaller rival SK Hynix on Tuesday
struck a more optimistic note than U.S. peers and forecast steady demand for memory
chips.

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