Asked by Brandon Barnett on Sep 24, 2024
Verified
An increase in the price of laptop memory chips causes the price for laptops _____________ and the quantity supplied for laptops ____________.
A) Increase;increase
B) Increase;decrease
C) Decrease;increase
D) Decrease,decrease
Laptop Memory Chips
Components in laptops that store data temporarily to increase the device's processing speed and efficiency.
Quantity Supplied
The amount of a good or service that producers are willing and able to sell at a given price over a specified period of time.
- Comprehend the effect of outside influences like natural disasters and the cost of inputs on market supply dynamics.
- Understand how changes in wages and cost of inputs affect market prices and quantities supplied and demanded.
Verified Answer
DA
Dorsa Amini4 days ago
Final Answer :
B
Explanation :
An increase in the price of laptop memory chips indicates an increase in input costs for laptop manufacturers. This leads to an increase in the cost of production, which is likely to be passed on to the consumers in the form of a higher price for laptops. As a result, the demand for laptops is expected to decrease, leading to a decrease in the quantity supplied. Therefore, the best choice is B, an increase in the price of laptops and a decrease in the quantity supplied.
Learning Objectives
- Comprehend the effect of outside influences like natural disasters and the cost of inputs on market supply dynamics.
- Understand how changes in wages and cost of inputs affect market prices and quantities supplied and demanded.