Listed below are several items which would affect the market for personal computers. For each event, do the following: 1) Tell whether the event shifts demand or supply, 2) tell whether the curve increases or decreases, and 3) report the predicted change in price and quantity of personal computers. a) A fall in the price of software b) A government subsidy to computer makers c) A decrease in consumers' income due to a recession d) An increase in the price of silicon (used in making all kinds of computer chips like CPU's, memory chips, etc.).
Listed below are several items which would affect the market for personal computers. For each event, do the following: 1) Tell whether the event shifts demand or supply, 2) tell whether the curve increases or decreases, and 3) report the predicted change in price and quantity of personal computers. a) A fall in the price of software b) A government subsidy to computer makers c) A decrease in consumers' income due to a recession d) An increase in the price of silicon (used in making all kinds of computer chips like CPU's, memory chips, etc.).
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 7QP
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Transcribed Image Text:Listed below are several items which would affect the market for personal computers. For each event, do the following: 1) Tell whether the event shifts
demand or supply, 2) tell whether the curve increases or decreases, and 3) report the predicted change in price and quantity of personal computers.
a) A fall in the price of software
b) A government subsidy to computer makers
c) A decrease in consumers' income due to a recession
d) An increase in the price of silicon (used in making all kinds of computer chips like CPU's, memory chips, etc.).
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