Author Question: How does an increase in the price of laptop memory chips affect the market of laptops? a. The ... (Read 151 times)

futuristic · **on:** Jul 1, 2018

How does an increase in the price of laptop memory chips affect the market of laptops?
a. The demand curve for laptops to shift to the right
b. The demand curve for laptops to shift to the left
c. The supply curve for laptops to shift to the right
d. The supply curve for laptops to shift to the left

Question 2

Consider the following linear demand function where QD = quantity demanded, P = selling price, and Y = disposable income: QD = 36 2.1P + .24Y The coefficient of P (i.e., 2.1) indicates that (all other things being held constant):
a. for a one percent increase in price, quantity demanded would decline by 2.1 percent
b. for a one unit increase in price, quantity demanded would decline by 2.1 units
c. for a one percent increase in price, quantity demanded would decline by 2.1 units
d. for a one unit increase in price, quantity demanded would decline by 2.1 percent
e. none of the above