Answer to Question #76858 in Economics for SHEHZAAD

Question #76858
3.1 With the aid of clearly labeled diagrams, explain the difference between a change in quantity demanded and a change in demand. (10 marks)
3.2 Use a fully labeled diagram of the market demand curve and market supply curve to illustrate each of the situations required. For each case, show CLEARLY on the diagram the original and the new equilibrium positions and the shift of the relevant curve. Use arrows on the diagram to indicate the direction of any change in equilibrium price and equilibrium quantity.
3.2.1 In the market for Smart LED TV sets, what happens when the cost of a digital colour generator (an input
in the manufacturing process) increases, ceteris paribus? (5 marks)
3.2.2 In the market for Samsung Tablets, what will happen if the price of Apple iPads rises, ceteris paribus? (5 marks)
1
Expert's answer
2018-05-07T07:54:08-0400
3.1 A change in quantity demanded is a movement along the curve and a change in demand is a shift of a curve.
3.2
3.2.1 In the market for Smart LED TV sets, if the cost of a digital colour generator (an input
in the manufacturing process) increases, then the supply will decrease, equilibrium price will increase, equilibrium quantity will decrease.
3.2.2 In the market for Samsung Tablets, if the price of Apple iPads rises, then the demand for Samsung Tablets will increase, equilibrium price will increase, equilibrium quantity will increase.

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