Demand and Supply Curves

We have a certain commodity, `pure Malaysia Laptop’, whose market we are going to analyze. Assume that exogenous (external) forces are equal in magnitude, while supply–demand curves are unitary elastic. Given a certain event/scenario, (a) analyze the curve/s affected, shifts or movements and the direction, and (b) effect to equilibrium price (P*) and equilibrium quantity (Q*) Scenario 1 a. Prices of optical drives suddenly increase The production cost has increased so the supply decreases and eventually the price go up.
The supply curve shifts to the left. b. A new market-standard operating system is released to the market but costs at least 50% higher than the previous edition This issue is considered another production cost so the supply curve shifts to the left. The supply decreases and price goes up. c. News spread that local laptops were contaminated with melamine Demand decreases because people buy less due to the news so the demand curve shifts to the left and the Q and P both decrease. d.
Video chatting and internet-on-the-go become fad New technology makes people buy more of the product so demand increases and as a consequence the demand curve shifts to the right and price and quantity both increases. Scenario 2 a. China laptop manufacturers were permitted to enter the Malaysian market Cheaper products attract consumers, so the demand for our product decreases. The shift in the demand curve goes to left and the P and Q both decreases. b. Average desktop computer prices have plunged to all-time lows

Save Time On Research and Writing
Hire a Pro to Write You a 100% Plagiarism-Free Paper.
Get My Paper

If desktop computers become cheaper the demand for laptops decreases so the demand curve shifts to left and eventually the P and Q decrease. c. New taxes were imposed to laptops sales (per unit tax) Imposing new taxes to laptops is additional cost for the production. so it affects the supply and the supply curve shifts to left. so the P increases and Q decreases. d. A recession/economic downturn cause the income of consumers to decline and cause the prices of laptop parts to increase
When consumer’s income decreases, the demand goes down and the demand curve shifts to the left. On the other hand the prices of laptop parts increases and that makes the production costs to increase so the supply decrease and the supply curve shifts to left. So the quantity decreases while we have an ambiguous equilibrium price. Scenario 3 a. Biggest local laptop manufacturer suddenly become bankrupt and the government gives subsidy to consumers to purchase `educational and computer-literacy’ related goods
By the biggest local laptop manufacturer going bankrupt, our company’s supply goes up and eventually the price goes up. The demand curve shifts to the left. So the Q decreases. b. New production techniques were adopted by local laptop manufacturer and prices of inputs in the production of desktop computer decline significantly When the prices for laptops decease the demand goes up and as a consequence the demand curve shifts to the right so the price and quantity increase.

Fountain Essays
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.

Essays

Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.

Admissions

Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.

Reviews

Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.

Reviews

Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.