Understand and Describe What Happens When a Market Is Not

Essay

Understand and describe what happens when a market is not in equilibrium.
-Suppose that the market for PC laptop computers is in equilibrium. Determine how the following shocks will affect the equilibrium price and quantity. Draw a fully labeled demand and supply curve diagram to illustrate each of your answers.
a. Computers become easier to use.
b. The price of memory chips falls.
c. Software prices fall.
d. All college students are required to own personal computers.
e. The price of electricity rises substantially.
f. Doctors warn of health risks from radiation from video terminals.