Figure 3.1
Answer the indicated question(s)by selecting the letter of the following diagrams showing supply and demand shifts that best represent the effect of each event on the relevant market,ceteris paribus.
-Refer to Figure 3.1.Consider the market for laptop computers.There is a decrease in the price of computer microchips.

Question

Figure 3.1
Answer the indicated question(s)by selecting the letter of the following diagrams showing supply and demand shifts that best represent the effect of each event on the relevant market,ceteris paribus. 
-Refer to Figure 3.1.Consider the market for laptop computers.There is a decrease in the price of computer microchips.

Quizplus · Accepted Answer

A decrease in the price of computer microchips will shift the supply curve to the right, as it lowers the cost of production for laptop manufacturers. This is represented by diagram B, where the supply curve shifts from S1 to S2, resulting in a lower equilibrium price (P2) and a higher quantity demanded (Q2).

Figure 3.1 Answer the Indicated Question(s)by Selecting the Letter of the Following