Question

Consider the market for smartphones. Explain whether the following events would cause an increase or a decrease in supply
or an increase or a decrease in the quantity supplied.
1. The price of touch screens used in smartphones declines. This will cause a(n)
Equilibrium quantity would ________. Equilibrium price would ________.
2. The price of machinery used to produce smartphones increases. This will cause a(n)
Equilibrium quantity would ________.
Equilibrium price would ________.
3. The number of manufactures of smartphones increases. This will cause a(n)
Equilibrium quantity would _________.
Equilibrium price would ________.
4. There is a decrease in the market demand for smartphones. This will cause a(n)
Equilibrium quantity would _______
Equilibrium price would ________.