Pharmaceutical drugs have an inelastic

demand, and computers have an elastic

demand. Suppose that technological advance

doubles the supply of both products (that is,

the quantity supplied at each price is twice

what it was).

a. What happens to the equilibrium price and

quantity in each market?

b. Which product experiences a larger change

in price?

c. Which product experiences a larger change

in quantity?

d. What happens to total consumer spending

on each product?