Question

You are the manager of a midsized company that assembles personal computers. You purchase most components -such as random access memory (RAM) - in a competitive market. Based on your marketing research, consumers earming over $80.000 purchase 1.5 times more RAM than consumers with lower incomes. One morning. you pick up a copy of The Wall Street Journal and read an article indicating that input components for RAM are expected to rise in price. forcing manufacturers to produce RAM at a higher unit cost. Based on this information, what can you expect to happen to the price you pay for random access memory? Would your answer change I, in addtn to this change in RAM input prices, the article indicated that consumer incomes are expected to fall over the next two years as the economy dips into recession? Explain.

Answer 1

On the off chance that the cost of info will increment inside the market, the estimation of Slam likewise will increment. This expansion inside the estimation of Smash can move the arrangement bend to left. This leftward move inside the Smash's offer can make the estimation of Slam ascend when contrasted with the sooner one.

Because of the decrease in monetary benefit of the benefactor getting force can reduce. As less salary is open with the supporter to pay, he/she can request less of the product constraining the interest bend to move leftward and convincing the incentive to fall.