Find changes on the equilibrium price

Reference no: EM1374392

Think the market for personal computers. Assume that the demand is constant: the demand curve does not change. Predict the effects of the following changes on the equilibrium price of computers. Illustrate your answer with a supply and demand diagram.

a. The cost of memory chips (one component of a computer) decreases.

b. The government imposes a $100 tax on personal computers.

Reference no: EM1374392

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