Illustrate what happens to equilibrium price and quantity

Assignment Help Business Economics

Reference no: EM1355963

Pharmaceutical drugs have an inelastic demand, and computers have an elastic demand.
Suppose that technological advance doubles the supply of both products (that is, the
quantity supplied at each price is twice what it was).

A. Illustrate what happens to the equilibrium price and quantity in each market?

B. Which product experiences a larger change in price?

C. Which product experiences a larger change in quantity?

D. What happens to total consumer spending on each product?

Reference no: EM1355963

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