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2 discuss the impact on the equilibrium price and quantity...

Question: 2 discuss the impact on the equilibrium price and quantity...

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2. Discuss the impact on the equilibrium price and quantity and illustrate it with a graph. a) Suppose a new discovery in computer manufacturing has just made computer production cheaper. Also, the popularity and usefulness of computers continues to grow. Use Supply and Demand analysis to predict how these shocks will affect equilibrium price and quantity of computers. Illustrate your answer with a graph. The currency used by the Confederate States of America during its brief existence from 1861 to 1865 has become a collectors item today. The Confederate Currency supply is perfectly inelastic. As the demand for the collectible increases and some of the old currency is destroyed or no longer of value as a collectible, what happens b) to the market price and quantity? Illustrate your answer with a graph

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