Question 12

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 2: Decide which direction (left, right, or unchanged) the demand or supply curve (or both) shifts.

Group of answer choices

the demand curve shifts to the left (decrease).

the demand curve shifts to the right (increase).

the supply curve shifts to the left (decrease).

the supply curve shifts to the right (increase).