Question
Since the pandemic started in May 2020, the price of semiconductors has risen by over 130 percent, according to thePHLX Semiconductor Index.As you know from
Since the pandemic started in May 2020, the price of semiconductors has risen by over 130 percent, according to thePHLX Semiconductor Index.As you know from reading the WSJ article on Taiwan Semiconductor Manufacturing Co. (TSMC), all firms in the industry currently are working at peak capacity.Orders being placed for many types of semiconductors today will not be filled for months.
a) Identify and explain what is happening to the market for semiconductors in the short run (since the pandemic).Use supply and demand analysis and cite specific points
b) Looking ahead to the long run (three or so plus years out), what do you think will happen to the prices and output of semiconductors?Justify your answer using material covered in the course
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