1.You are the manager of a midsize company that assembles personal computers.You purchase most components - such as random access memory (RAM) - in a competitive market.Based on your marketing research, consumers earning over $80,000 purchase computers with 1.5 times more RAM than consumers with lower incomes.One morning, you pick up a copy of the Wall Street Journal and read an article indicating that input components for RAM are expected to rise in price, forcing manufacturers to produce RAM at a higher cost per unit.Based on this information, what can you expect to happen to the price you pay for random access memory?Give a brief written answer and support your answer with a supply-demand graph.

Would your answer change if, in addition to this change in RAM input prices, the article indicated that consumer incomes are expected to fall over the next two years as the economy dips into a recession?Give a written answer and illustrate with supply-demand graph(s).