What might happen to the equilibrium price and quantity of MacBooks if the price of silicon (which goes into the production of microchips) were to increase; while, at the same time, the price of PC laptops (a substitute for MacBooks) also increased

Equilibrium price would increase and the effect on equilibrium quantity would be indeterminate.

Explanation:

The increase in the cost of silicon increases the cost of production and as a result supply falls. A fall in supply leads to fall in quantity and a rise in price.

If the price of PC laptops increases, the demand for MacBooks would increase. The increase in demand for MacBooks would increase quantity and price.

Taking these two occurrences together, the effect on equilibrium price would be an increase while on equilibrium quantity it would be indeterminate.

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hi,

henry is an economist and wants to understand the relationship between inflation and consumer spending habits. for his research, he needs the consumer price index for 2014 and the inflation rate. based on the prices of goods given, what will he find to be the cpi and inflation rate for 2014? assume that a consumer’s basket for three consecutive years consists of the following:

you dont privide answer choices.

answer - 15% of a inflatation rate is 15% less in cpi