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Taiwan is a major world supplier of semiconductor chips. A recent earthquake severely damaged the production facilities of Taiwanese chip-producing companies, sharply reducing the amount
Taiwan is a major world supplier of semiconductor chips. A recent earthquake severely damaged the production facilities of Taiwanese chip-producing companies, sharply reducing the amount of chips they could produce. a. Assume that the total revenue of a typical non-Taiwanese chip manufacturer rises due to these events. In terms of elasticity, what must be true for this to happen? Illustrate the changes in total revenue with a diagram, indicating the earthquake's price effect and quantity effect on this company's total revenue
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