Answer to Question #230557 in Microeconomics for Mimi

Question

There is a market of computer i.e. there is some demand and supply of computer. Shown in a diagram the effect on the demand and supply curve, the equilibrium price and the equilibrium quantity if “THE SALARIES OF ELECTRONIC TECHNICIAN GO UP”. (Explain also in words).

Answer 1

The rise of technician salaries raises the computer production cost. this then shift the supply curve to the left as price rises to P1 and quantity of computers reduces to Q1.