Demand and Supply

Let's say that Qualcomm hiked the price of their Snapdragon chips suddenly. These chips are used for manufacturing most major smartphones in the market.

What can you infer about the change in the equilibrium price and quantity of smartphones that use Snapdragon chips? (Assume ceteris paribus.)

The price will increase and the quantity will increase

The price will decrease and the quantity will increase

The price will decrease and the quantity will decrease

The price will increase and the quantity will decrease