Question

determine how supply or demand shift and how the equilibrium price and quantity change. smartphones: microchips used in smartphones have become more powerful and less costly to produce.

Answer 1

As the supply of smartphones grows, the equilibrium price will decline and the equilibrium quantity will increase.
Since one of the materials needed to create smartphones has become more affordable, more smartphones will be made, increasing its supply, which leads to a decrease in price and an increase in equilibrium quantity.

Supply and Demand
Two fundamental economic theories are combined in the law of supply and demand to explain how changes in the price of a resource, good, or service impact its supply and demand.  Supply grows as the price rises, but demand drops. In contrast, as the price falls, supply is constrained and demand is increased. On a graph, levels of supply and demand for various prices can be represented as curves. The process of price discovery in the market is represented by the intersection of these curves, which denotes the equilibrium or market-clearing price at which supply and demand are equal.

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