In the market for flash memory drives (a normal good), explain whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded. Also, explain what happens to the equilibrium quantity and the market-clearing price.
a) There are increases in the prices of storage racks and boxes for flash memory drives.
b) There is a decrease in the price of computer drives that read the information contained on flash memory drives.
c) There is a dramatic increase in the price of secure digital cards that, like flash memory drives, can be used to store digital data.
d) A booming economy increases the income of the typical buyer of flash memory drives.
e) Consumers of flash memory drives anticipate that the price of this good will decline in the future.
In the market for flash memory drives (a normal good), explain whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded. Also, explain what happens to the equilibrium quantity and the market-clearing price.
a) There are increases in the prices of storage racks and boxes for flash memory drives.
b) There is a decrease in the price of computer drives that read the information contained on flash memory drives.
c) There is a dramatic increase in the price of secure digital cards that, like flash memory drives, can be used to store digital data.
d) A booming economy increases the income of the typical buyer of flash memory drives.
e) Consumers of flash memory drives anticipate that the price of this good will decline in the future.
