Japan is a major world supplier of semiconductor chips.A recent earthquake severely damaged the production facilities of Japanese chip-producing companies,sharply reducing the amount of chips they could produce.
a.Assume that the total revenue of a typical non-Japanese chip manufacturer rises due to these events.In terms of the elasticity of demand,what must be true for this to happen
b.Now assume that the total revenue of a typical non-Japanese chip manufacturer falls due to these events.In terms of the elasticity of demand,what must be true for this to happen

Question

Quizplus · Accepted Answer

The Answer of Japan is a major world supplier of semiconductor chips.A recent earthquake severely damaged the production facilities of Japanese chip-producing companies,sharply reducing the amount of chips they could produce.
a.Assume that the total revenue of a typical non-Japanese chip manufacturer rises due to these events.In terms of the elasticity of demand,what must be true for this to happen
b.Now assume that the total revenue of a typical non-Japanese chip manufacturer falls due to these events.In terms of the elasticity of demand,what must be true for this to happen

Japan Is a Major World Supplier of Semiconductor Chips