Demand and Supply Essay Video
Supply and Demand Practice Demand and Supply Essay
Assume that exogenous Demand and Supply Essay forces are equal in magnitude, while supply—demand curves are unitary elastic. Prices of optical drives suddenly increase The production cost has increased so the supply decreases and eventually the price go up. The supply curve shifts to the left. The supply decreases and price goes up. News spread that local laptops were contaminated with melamine Demand decreases because people buy less due to the news so the demand curve shifts to the left and the Q and P both decrease. Video chatting and internet-on-the-go become fad New technology makes people buy more of the product so demand increases and as a consequence the demand curve shifts to the right and price and quantity both increases.
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Scenario 2 a. China laptop manufacturers were permitted to enter the Malaysian market Cheaper products attract consumers, so the demand for our product decreases. The shift in the demand click goes to left and the P and Q both decreases. Average desktop computer prices have plunged to all-time lows.
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If desktop computers become cheaper the demand for laptops decreases so the demand curve shifts to left and eventually the P and Q decrease. New taxes were imposed to laptops sales per unit tax Imposing new taxes to laptops is additional cost for the production. On the other hand the prices of laptop parts increases and that makes the Demand and Supply Essay costs to increase so the supply decrease and the supply curve shifts to left. So the quantity decreases while we have an ambiguous equilibrium price.
Scenario 3 a.
The demand curve shifts to the left. So the Q decreases. New production techniques were adopted by local laptop manufacturer and prices of inputs in the production of desktop computer decline significantly When the prices for laptops decease the demand goes up and as a consequence the demand curve shifts to the right so the price and quantity increase. Delivering a high-quality product at a reasonable price is not enough anymore.
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