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Answer to Question #136845 in Microeconomics for kayj
Question #136845
If the price of processor chips used in manufacturing personal computers decreases, how will the equilibrium price and equilibrium quantity of personal computers change?
Expert's answer
If the price of processor chips used in the manufacturing personal computers decreases, the supply of the computers shift to the right as a result. There is a reduced new equilibrium price and a higher new equilibrium quantity of computers.
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