a. Before lockdown due to COVID-19, the market for laptops, desktops and Windows-10 in Karachi are in equilibrium with an equilibrium price of Rs.50,000 and the equilibrium quantity of 20,000 in the laptop market, the equilibrium price of Rs.35000 and the equilibrium quantity of 12,000 in desktop market, and the equilibrium price of Rs.8000 and equilibrium quantity of 32,000 in the Window-10 market. After the reopening the markets, and business in Karachi, the price of laptops has increased from Rs.50, 000 to Rs.70, 000. What will be the impact of rising laptop prices in all three markets? Explain your answer using graphs. Draw graphs for the three markets separately, labeling everything clearly.
Answers
Answer:
a. Before lockdown due to COVID-19, the market for laptops, desktops and Windows-10 in Karachi are in equilibrium with an equilibrium price of Rs.50,000 and the equilibrium quantity of 20,000 in the laptop market, the equilibrium price of Rs.35000 and the equilibrium quantity of 12,000 in desktop market, and the equilibrium price of Rs.8000 and equilibrium quantity of 32,000 in the Window-10 market. After the reopening the markets, and business in Karachi, the price of laptops has increased from Rs.50, 000 to Rs.70, 000. What will be the impact of rising laptop prices in all three markets? Explain your answer using graphs. Draw graphs for the three markets separately, labeling everything clearly.
Explanation:
a. Before lockdown due to COVID-19, the market for laptops, desktops and Windows-10 in Karachi are in equilibrium with an equilibrium price of Rs.50,000 and the equilibrium quantity of 20,000 in the laptop market, the equilibrium price of Rs.35000 and the equilibrium quantity of 12,000 in desktop market, and the equilibrium price of Rs.8000 and equilibrium quantity of 32,000 in the Window-10 market. After the reopening the markets, and business in Karachi, the price of laptops has increased from Rs.50, 000 to Rs.70, 000. What will be the impact of rising laptop prices in all three markets? Explain your answer using graphs. Draw graphs for the three markets separately, labeling everything clearly.