Figure 4-13
The diagram below pertains to the supply of paper in university markets.
-Refer to Figure 4-13.All else equal,an increase in the use of laptop computers for note-taking would cause a move

Question

Figure 4-13
The diagram below pertains to the supply of paper in university markets. 
-Refer to Figure 4-13.All else equal,an increase in the use of laptop computers for note-taking would cause a move

Quizplus · Accepted Answer

An increase in the use of laptop computers for note-taking would reduce the demand for paper, causing a leftward shift of the demand curve from D1 to D2. This would lead to a surplus of paper at the initial equilibrium price, P1. Therefore, the price would decline until a new equilibrium is reached at point y, where the quantity supplied (Q2) equals the quantity demanded (Q2). This corresponds to a movement from point x to point y along the supply curve (S_B), indicating a decrease in the quantity supplied of paper.

Figure 4-13 the Diagram Below Pertains to the Supply of Paper in Paper