The two accompanying diagrams show supply and demand curves for two substitute commodities: regular cell phones and smartphones. 11eb7694_065b_0da8_adfc_a5778d8537db_SM2809_00 a. On the right-hand diagram, show what happens when rising raw material prices make it costlier to produce regular cell phones. b. On the left-hand diagram, show what happens to the market for smartphones.

Macroeconomics 13th Edition by William Baumol ,Alan Blinder

النسخة 13الرقم المعياري الدولي: 978-1305280601

Macroeconomics 13th Edition by William Baumol ,Alan Blinder

النسخة 13الرقم المعياري الدولي: 978-1305280601

تمرين 4

The two accompanying diagrams show supply and demand curves for two substitute commodities: regular cell phones and smartphones.

a. On the right-hand diagram, show what happens when rising raw material prices make it costlier to produce regular cell phones.
b. On the left-hand diagram, show what happens to the market for smartphones.

التوضيح

موثّق

a. Rise in raw material cost will increa...