If there is an increase in the popularity of laptops and the cost of making laptop...

If there is an increase in the popularity of laptops and the cost of making laptop becomes cheaper also for the sellers, then what will happen to the New Equilibrium price and quantity sold (using Supply and Demand curve):

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Expert Solution

If the popularity of laptops increase then the demand curve will shift to the right, new equilibrium will be at a higher price and higher level of output. As the production also became cheaper then supply curve will shift to the right and new equilibrium will be at a lower price higher output.

Overall, the new equilibrium will be at a higher quantity and indeterminate price level.

Rahul Sunny answered 1 year ago

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