Question

Consider the market for smartphones. Explain whether the following events would cause an increase or a decrease in supply or an increase or a decrease in the quantity supplied. Illustrate each, and show what would happen to the equilibrium quantity and the market price.1. The price of touch screens used in smartphones declines. This will cause a(n) ________.Equilibrium quantity would ________. Equilibrium price would ________.
2. The price of machinery used to produce smartphones increases. This will cause a(n) _________.
Equilibrium quantity would ________.
Equilibrium price would ________.
3. The number of manufactures of smartphones increases. This will cause a(n) _________.
Equilibrium quantity would _________.
Equilibrium price would ________.
4. There is a decrease in the market demand for smartphones. This will cause a(n) __________.
Equilibrium quantity would _______
Equilibrium price would ________.

Answer 1

Answer:1. Increase in supply; increase; decrease

2. Decrease in supply; decrease; increase

3. Increase in supply; increase; decrease

4. Decrease in quantity supplied; decrease; decrease

Explanation: