Question

Required information required information consider the market for tablet computers:

a. Suppose the wages of computer-factory workers rises. This will cause of tablet computers to , causing tablet computer price to and quantity to .
b. Suppose the price of notebook computers (a substitute for tablets) falls. This will cause for tablet computers to , causing price of tablet computers to and quantity to .
c. Suppose the number of tablet computer manufacturers rises. This will cause of tablet computers to , causing price to and quantity to .
d. Suppose an exciting new game is released that is only available on tablet computers. This will cause for tablet computers to , causing tablet computer price to and quantity to .
e. Suppose the prices for popular apps (complements to tablet computers) rise. This will cause of tablet computers to , causing tablet computer price to and quantity to .

Answer 1

a. Supply, fall, rise, fall

b. Demand, fall, fall, fall

c. Supply, rise, fall, rise

d. Demand, rise, rise, rise

e. Demand, fall, fall, fall

Step-by-step explanation:

a. When wages of computer-factory workers rises input cost increases and supply decreases. This will cause supply of tablet computers to fall, causing tablet computer price to rise and quantity to fall .

b. When the price of notebook computers (a substitute for tablets) falls. Tablet become less attractive. This will cause demand for tablet computers to fall, causing price of tablet computers to fall and quantity to fall.

c. When the number of tablet computer manufacturers rises., there are more suppliers and thus more supply. This will cause supply of tablet computers to rise, causing price to fall and quantity to rise.

d. When an exciting new game is released that is only available on tablet computers, tablet computers become more attractive. This will cause demand for tablet computers to rise, causing tablet computer price to rise and quantity to rise.

e. Suppose the prices for popular apps (complements to tablet computers) rise. This will cause demand for tablet computers to fall, causing tablet computer price to fall and quantity to fall.

Answer 2

a. Supply, fall, rise, fall

b. Demand, fall, fall, fall

c. Supply, rise, fall, rise

d. Demand, rise, rise, rise

e. Demand, fall, fall, fall

Explanation:

a. When wages of computer-factory workers rises input cost increases and supply decreases. This will cause supply of tablet computers to fall, causing tablet computer price to rise and quantity to fall .

b. When the price of notebook computers (a substitute for tablets) falls. Tablet become less attractive. This will cause demand for tablet computers to fall, causing price of tablet computers to fall and quantity to fall.

c. When the number of tablet computer manufacturers rises., there are more suppliers and thus more supply. This will cause supply of tablet computers to rise, causing price to fall and quantity to rise.

d. When an exciting new game is released that is only available on tablet computers, tablet computers become more attractive. This will cause demand for tablet computers to rise, causing tablet computer price to rise and quantity to rise.

e. Suppose the prices for popular apps (complements to tablet computers) rise. This will cause demand for tablet computers to fall, causing tablet computer price to fall and quantity to fall.