Figure 3-7
-Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for laptop computers.Which panel best describes what happens in this market when the price of computer hard drives falls?
A)Panel (a)
B)Panel (b)
C)Panel (c)
D)Panel (d)

Question

Figure 3-7 
-Refer to Figure 3-7.Assume that the graphs in this figure represent the demand and supply curves for laptop computers.Which panel best describes what happens in this market when the price of computer hard drives falls?
A)Panel (a) 
B)Panel (b) 
C)Panel (c) 
D)Panel (d)

Quizplus · Accepted Answer

The fall in the price of computer hard drives will shift the supply curve to the right, leading to an increase in the equilibrium quantity and a decrease in the equilibrium price. This is shown in Panel (a).

Figure 3-7 -Refer to Figure 3-7.Assume That the Graphs in This Figure