Please give a detailed answer with a full explanation. For the graph make sure it is readable, visible, and clear to see the movements. Please answer the fill in the blanks too. Here are the options for the fill in the blanks. Option #1: decreased or increased or was unchanged Option #2: decreased or increased or was unchanged
Please give a detailed answer with a full explanation. For the graph make sure it is readable, visible, and clear to see the movements. Please answer the fill in the blanks too. Here are the options for the fill in the blanks.
Option #1:
decreased or increased or was unchanged
Option #2:
decreased or increased or was unchanged
Answer:
The supply of Laptops decreased and the demand for laptops also decreased.
Explanation:
According to the question, the quantity of laptops has decreased from 2010 to 2011 but the price has not changed. This situation will occur if there is an equal decrease in the demand and supply of laptops. Due to an equal decrease in the demand and supply, there will be a leftward shift in both the demand and supply curves. The amount of shift will be equal.
Suppose due to an increase in tax on producers there is a decrease in supply. Suppose at the same time consumers' income decreases and they decrease their demand. As a result, the demand also decreases. If the decrease in supply is equal to the decrease in demand then the price will not change but the quantity will decrease.
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