Chapter 7, Problem 7PA

Subpart (a):

To determine

To draw:The supply and demand curve diagram to show the influence of decrease in the production cost on the quantity and price of flat screen TVs.

Subpart (b):

To determine

The impact of consumer surplus and produce surplus in the supply and demand curve diagram.

Subpart (c):

To determine

Whether producer or consumers of TVs benefits most when the production costs decreases.