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

Question

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

Quizplus · Accepted Answer

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.

An Increase in the Price of Laptop Memory Chips Causes