Please give a detailed answer with a full explanation. For the graph make sure it is readable, visible, and clear to see the movements. Please answer the fill in the blanks too. Here are the options for the fill in the blanks.Option #1:decreased or increased or was unchangedOption #2:decreased or increased or was unchanged 14. A supply and demand puzzleThe following graph shows the market for laptops in 2010. Between 2010 and 2011, the equilibrium price of laptops remained constant, but theequilibrium quantity of laptops decreased. From this, you can conclude that between 2010 and 2011, the supply of laptopsandthe demand for laptopsAdjust the graph to illustrate your answer by showing the positions of the supply and demand curves in 2011.Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps backto its original position, just drag it a little farther. Adjust the graph to illustrate your answer by showing the positions of the supply and demand curves in 2011.Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps backto its original position, just drag it a little farther.SupplyDemandSupplyDemandQUANTITY (Laptops)PRICE (Dollars per laptop)

Answered: Please give a detailed answer with a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Question

100%

Please give a detailed answer with a full explanation. For the graph make sure it is readable, visible, and clear to see the movements. Please answer the fill in the blanks too. Here are the options for the fill in the blanks.
Option #1:
decreased or increased or was unchanged
Option #2:
decreased or increased or was unchanged

14. A supply and demand puzzle
The following graph shows the market for laptops in 2010. Between 2010 and 2011, the equilibrium price of laptops remained constant, but the
equilibrium quantity of laptops decreased. From this, you can conclude that between 2010 and 2011, the supply of laptops
and
the demand for laptops
Adjust the graph to illustrate your answer by showing the positions of the supply and demand curves in 2011.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back
to its original position, just drag it a little farther.

Adjust the graph to illustrate your answer by showing the positions of the supply and demand curves in 2011.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back
to its original position, just drag it a little farther.
Supply
Demand
Supply
Demand
QUANTITY (Laptops)
PRICE (Dollars per laptop)

Expert Solution

Step 1

Answer:

The supply of Laptops decreased and the demand for laptops also decreased.

Explanation:

According to the question, the quantity of laptops has decreased from 2010 to 2011 but the price has not changed. This situation will occur if there is an equal decrease in the demand and supply of laptops. Due to an equal decrease in the demand and supply, there will be a leftward shift in both the demand and supply curves. The amount of shift will be equal.

Suppose due to an increase in tax on producers there is a decrease in supply. Suppose at the same time consumers' income decreases and they decrease their demand. As a result, the demand also decreases. If the decrease in supply is equal to the decrease in demand then the price will not change but the quantity will decrease.

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions