Question 11

1pts

Use the three-step demand-supply analysis discussed in class to analyze changes to the equilibrium price, and quantity in the California computer market when Intel introduces a new but much cheaper computer chip (with the same computing power). Step 1: Decide if the new chip shifts the computer demand or the supply curve or both:

Group of answer choices

new computer chip affects the demand curve only.

new computer chip affects the supply curve only.

new computer chip affects both the demand and supply curves.

new computer chip does not affect electricity demand or supply.