All else equal,a shortage of display screens used in the manufacture of tablet computers would cause the
A) equilibrium quantity of the tablet computers to increase and the equilibrium price of the tablet computers to decrease.
B) equilibrium price of the tablet computers to increase and the equilibrium quantity of the tablet computers to decrease.
C) equilibrium price and quantity of the tablet computers to increase.
D) equilibrium price and quantity of the tablet computers to decrease.

Question

Quizplus · Accepted Answer

If there is a shortage of display screens used in the manufacture of tablet computers, the supply of tablets will decrease, causing the equilibrium price to increase. Additionally, consumers will demand fewer tablets at the higher price, causing the equilibrium quantity to decrease. Therefore, the correct answer is B.

All Else Equal,a Shortage of Display Screens Used in the Manufacture