Let's say that Qualcomm hiked the price of their Snapdragon chips suddenly. These chips are used...
Let's say that Qualcomm hiked the price of their Snapdragon chips suddenly. These chips are used for manufacturing most major smartphones in the market. What can you infer about the change in the equilibrium price and quantity of smartphones that use Snapdragon chips? (Assume ceteris paribus.)
1) The price will increase and the quantity will increase
2) The price will decrease and the quantity will increase
3) The price will decrease and the quantity will decrease
4) The price will increase and the quantity will decrease
Homework Answers
In the given situation, Qualcomm hiked the price of their chips.
These are used as raw material in smartphones.
Thus cost of production of smartphones rises, and the supply curve for smartphones shifts to the left.
The price of smartphones increases. Due to the rise in price, and the leftward shift in supply, the quantity (consumed and produced) of smartphones decreases.
Therefore, the correct choice is:
Option 4) The price will increase and the quantity will decrease
Add Answer to:
Let's say that Qualcomm hiked the price of their
Snapdragon chips suddenly. These chips are used...
Question 40 An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price: To...
Question 40 An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price: To rise and quantity to fall. To fall and quantity to rise. And quantity to rise. And quantity to fall Question 41 Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to: Increase and the equilibrium quantity of the other good to increase Increase and the equilibrium quantity of the...
Silicon is used for the manufacturing of semiconductor chips. At the end of last year a...
Silicon is used for the manufacturing of semiconductor chips. At the end of last year a large new source of silicon has been discovered this year and the price of silicon has decreased by 15%. Semiconductor chips are used in devices, cell phones, gaming systems, and this year many new devices are now using chips. If you were drawing a supply and demand graph to illustrate the changes to the semiconductor market since last year, what would you say has...
1. John is studying the effects of income on the demand for peppers. Which factors are...
1. John is studying the effects of income on the demand for peppers. Which factors are held constant when using the "ceteris paribus" assumption? income all factors affecting demand, except income all factors affecting demand, including income none of the above Only price could change the ceteris paribus. Change of income can affect demand. Do we disregard this in ceteris paribus? 2. If supply and demand shift simultaneously, the equilibrium price __________________. must decrease if the equilibrium quantity increases and...
1. If pizza and burritos are substitutes in consumption and independent in production and if the...
1. If pizza and burritos are substitutes in consumption and independent in production and if the price of pizza decreases, then, ceteris paribus, in the burrito market the demand for burritos will increase and both the equilibrium price of burritos, Pburritos*, and the equilibrium quantity of burrito, Qburritos*, will increase. quantity demanded of burritos will decrease and both Pburritos* and Qburritos* will decrease. supply of burritos will decrease, Pburritos* will increase, and Qburritos* will decrease. demand for burritos will decrease,...
Directions: For each question, show what happens to Equilibrium price (P) and quantity (Q) using supply-demand...
Directions: For each question, show what happens to Equilibrium price (P) and quantity (Q) using supply-demand analysis. Clearly state your conclusion (e.g., "equilibrium price increases, while equilibrium quantity decreases" using the short-hand " ^P and vQ"). Be sure to complete and correctly label your graphs. Question 5: Part A: An important ingredient/input in the production of gasoline is petroleum. Suppose there is a technological innovation - let's call it hydraulic fracturing ("fracking") - in the production of petroleum. Ceteris paribus,...
Person A Person B Price Price ! D 3 5 0 4 5 Compact disks Compact...
Person A Person B Price Price ! D 3 5 0 4 5 Compact disks Compact disks Figure 4.9 27. Suppose that population increases. Ceteris paribus, in the real estate market there will most likely be a. a decrease in the demand. b. a decrease in the quantity demanded. c. an increase in the demand. d. an increase in the quantity demanded.
Ceteris paribus, if demand and supply both increase at the same time, equilibrium price and equilibrium...
Ceteris paribus, if demand and supply both increase at the same time, equilibrium price and equilibrium quantity_ a. increases; may rise, fall, or stay the same, depending on the size of the two shifts. decreases; may rise, fall, or stay the same, depending on the size of the two shifts. c. may rise, fall, or stay the same, depending on the size of the two shifts; increases may rise, fall, or stay the same, depending on the size of the...
You have been hired as a strategic consultant, to make the prediction of what will happen...
You have been hired as a strategic consultant, to make the prediction of what will happen in the private medical consultation market if in the last year the technology for medical diagnoses and treatments has increased considerably, but the average income of regular patients has decreased in about 10% (Ceteris Paribus, and a normal good). Specifically, you are asked to determine what will happen to the equilibrium price and quantity in the market? a) The equilibrium price will decrease and...
Scored out of st in Week 2 2 hours 50 questions 100 Points est # 1...
Scored out of st in Week 2 2 hours 50 questions 100 Points est # 1 : Time limit: Length: Exit this Test | Time Remaining 27 minutes Save Progress Last Saved: 4:47 PM D that has many complements If an increase in thé price of woozles causes the demand for widgets to decrease, what can you infer about the two gobds? (2pts 41) a They aré goth inferior goods. B Noné othe other answers is are both normal goods....
2) Chile is an importer of computer chips, taking the world price of $12 per chip...
2)
Chile is an importer of computer chips, taking the world price
of $12 per chip as given. Suppose Chile imposes a $7 tariff on
chips. Which of the following outcomes is possible?
A.
The price of chips in Chile increases to $16; the quantity of
Chilean-produced chips increases; and the quantity of chips
imported by Chile decreases.
B.
The price of chips in Chile increases to $19; the quantity of
Chilean-produced chips increases; and the quantity of chips
imported...
Question 40 An increase in the supply of gasoline, ceteris paribus, will cause equilibrium price: To rise and quantity to fall. To fall and quantity to rise. And quantity to rise. And quantity to fall Question 41 Assume two goods are substitutes. Ceteris paribus, a decrease in the price of one good will cause the equilibrium price of the other good to: Increase and the equilibrium quantity of the other good to increase Increase and the equilibrium quantity of the...
Silicon is used for the manufacturing of semiconductor chips. At the end of last year a large new source of silicon has been discovered this year and the price of silicon has decreased by 15%. Semiconductor chips are used in devices, cell phones, gaming systems, and this year many new devices are now using chips. If you were drawing a supply and demand graph to illustrate the changes to the semiconductor market since last year, what would you say has...
Person A Person B Price Price ! D 3 5 0 4 5 Compact disks Compact disks Figure 4.9 27. Suppose that population increases. Ceteris paribus, in the real estate market there will most likely be a. a decrease in the demand. b. a decrease in the quantity demanded. c. an increase in the demand. d. an increase in the quantity demanded.
Ceteris paribus, if demand and supply both increase at the same time, equilibrium price and equilibrium quantity_ a. increases; may rise, fall, or stay the same, depending on the size of the two shifts. decreases; may rise, fall, or stay the same, depending on the size of the two shifts. c. may rise, fall, or stay the same, depending on the size of the two shifts; increases may rise, fall, or stay the same, depending on the size of the...
Scored out of st in Week 2 2 hours 50 questions 100 Points est # 1 : Time limit: Length: Exit this Test | Time Remaining 27 minutes Save Progress Last Saved: 4:47 PM D that has many complements If an increase in thé price of woozles causes the demand for widgets to decrease, what can you infer about the two gobds? (2pts 41) a They aré goth inferior goods. B Noné othe other answers is are both normal goods....
2)
Chile is an importer of computer chips, taking the world price
of $12 per chip as given. Suppose Chile imposes a $7 tariff on
chips. Which of the following outcomes is possible?
A.
The price of chips in Chile increases to $16; the quantity of
Chilean-produced chips increases; and the quantity of chips
imported by Chile decreases.
B.
The price of chips in Chile increases to $19; the quantity of
Chilean-produced chips increases; and the quantity of chips
imported...
Most questions answered within 3 hours.
-
on april 10, a company acquired land valued at $58,000 in
exchange for 1,000 shares of...
asked 3 seconds ago -
Is
ampicillin or solvents (such as acetone) more effective at killing
off bacteria, in general? Explain...
asked 5 minutes ago -
The current risk-free rate is 4.0% and the market risk premium
is 5.0%. If Ford Motor...
asked 21 minutes ago -
Advances in technology have increased our opportunities to
connect with others. Along with the benefits of...
asked 29 minutes ago -
Compute the interest rate at which $500 per month payments
should grow to accumulate savings of...
asked 30 minutes ago -
The following information pertains to a weekly payroll of Texera
Tile Company:
a. The total wages...
asked 33 minutes ago -
Alice has the RSA public key (n, e) = (11413, 251) and private
key d =...
asked 46 minutes ago -
QUESTION 5
A drug or medicine can reach the brain more effectively by
placing the drug...
asked 50 minutes ago -
Developmental biology
A mouse contains a mutation that results in a failure of their
long
bones...
asked 46 minutes ago -
Rammazzotti, Inc., is looking for feedback on company
performance. The company compares the budget for the...
asked 51 minutes ago -
A manufacturer of chocolate chips would like to know whether its
bag filling machine works correctly...
asked 59 minutes ago -
Consider the student registration business process at
your college:
1.)Describe the steps necessary for you to...
asked 1 hour ago