The market for MacBooks is in equilibrium, until Microsoft introduced its newest laptop. Microsoft's laptop is less expensive  than the existing MacBook. Assume the two goods are substitutes. 

A. (2 points) What happens to the demand for MacBooks? 

B. (2 points) What happens to the supply of MacBooks? 

C. (2 points) What happens to the price of MacBooks in the new equilibrium? (hint, it might help you to draw a graph, but it is not required)

D. (2 points) What happens to the quantity of MacBooks in the new equilibrium (hint, increase, decrease, none, ambiguous). 

 

The market for electric cars is in equilibrium. A new development in technology allows all electric cars to be produced at a faster rate, for the same cost. 

A. (2 points) What happens to the demand for electric cars?

B. (2 points) What happens to the supply of electric cars?

C. (2 points) What happens to the price of electric cars in the new equilibrium? (hint, it might help you to draw a graph, but it is not required)

D. (2 points) What happens to the quantity of electric cars in the new equilibrium?

The supply and demand for solar panels in Tempe are given by:

Supply: P = 10 + 2Q^s

Demand: P = 100 -4 Q^d

A. (4 points) What is the equilibrium quantity of solar panels in Tempe? 

B. (4 points) What is the equilibrium price of solar panels in Tempe? 

Refer to the graph below for questions C and D:

C. What area on the graph corresponds to consumer surplus? 

D. What are on the graph corresponds to producer surplus? 

Supply A B C D Demand QM