5. Thailand is the world’s second-largest producer of hard drives after China. In 2011, there were severe floods in Thailand. Because the hard drive manufacturing factories had to shut down due to the flood, the cost of hard drives increased significantly.

a. Draw and discuss a supply and demand diagram to explain the increase in hard drive prices.

b. Are computers and hard drives substitutes or complements?

Explain.

c. What do you think the impact of this flood has been on the equilibrium price and quantity of computers?

Draw a supply and demand diagram for the computer market to explain your answer.