Using separate diagrams for each subpart, sketch the impact of the following changes on the market for laptop computers. (Note: You do not need to find a mathematical answer. Just sketch the qualitative impacts). You should identify the equilibrium price and quantity both before and after the change and then briefly explain the change. You can assume all the relevant markets are perfectly competitive for the purposes of this question and should consider each change in isolation. (a) An increase in the price of labor used to make computers (b) An increase in the number of people working from home (c) A decrease in the supply of semiconductor chips used in computers
Using separate diagrams for each subpart, sketch the impact of the following changes on the market for laptop computers. (Note: You do not need to find a mathematical answer. Just sketch the qualitative impacts). You should identify the equilibrium price and quantity both before and after the change and then briefly explain the change. You can assume all the relevant markets are perfectly competitive for the purposes of this question and should consider each change in isolation. (a) An increase in the price of labor used to make computers (b) An increase in the number of people working from home (c) A decrease in the supply of semiconductor chips used in computers
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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