Suppose the technology to manufacture computers improves but due to some recession in the economy, the income of the consumers falls. Assuming computers to be a normal good, what will be the equilibrium quantity and price for computers in this case?"

Suppose the technology to manufacture computers improves but due to some recession in the economy, the income of the consumers falls. Assuming computers to be a normal good, what will be the equilibrium quantity and price for computers in this case?"

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 4MC

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Step 1 :- Impact on supply due to improvement in manufacturing technology of computer.

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Step 2 :- Impact in demand due to income of consumers fall in recession.

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Step 3 :- Combined effect on demand and supply.

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