Answer to Question #166459 in Macroeconomics for Anchal Mishra

Question

3. Suppose fidget spinner market is in equilibrium. If the price of ball

bearing falls and all other variables are held constant, what would you

expect for the new price and quantity of fidget spinner?

Answer 1

Fidget spinners are basically low-friction ball bearings. When two objects press against one another, friction prevents them from sliding smoothly.

fidget spinner require ball bearings for production.

if prices of ball bearings prices fall ,the cost of production will be lowered and the quantity produced will double, the price of fidget spinner will remain at equillibrium or fall due to oversupply.