Answered: The questions in parenthesis are the…

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter4: The Market Forces Of Supply And Demand

Section: Chapter Questions

Problem 3PA: Consider the market for minivans. For each of the events listed here, identify which of the...

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The questions in parenthesis are the answer choices. Only 1 can be selected.

In each of the following cases, determine how supply or demand shifts and how the equilibrium changes.

a. Smartphones: Microchips used in smartphones become less costly to produce. As a result, the (demand for ,supply of, supply of and demand for) smartphones increase(s), causing the equilibrium price to (fall, rise, rise, fall, or remain unchanged) and the equilibrium quantity to (fall, rise, rise, fall, or remain unchanged)

b. ALS medical research funds: The ALS ice bucket challenge goes viral, leading to greater awareness of the benefits of and need for ALS research. As a result, the (supply of and demand for, demand for, supply of)

ALS research increase(s), causing the equilibrium price (or opportunity cost) of such research to (fall, rise, rise, fall, or remain unchanged)

and the equilibrium quantity to (fall, rise, rise, fall, or remain unchanged)

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