Demand and Supply Curves

We fetch a certain commodity, excellent Malaysia Laptop, whose market we are exit to analyze. Assume that exogenous (external) forces are adequate in magnitude, while leave subscribe to cut backs are unitary elastic. Given a certain event/scenario, (a) analyze the curve/s affected, shifts or movements and the direction, and (b) effect to rest price (P*) and equilibrium quantity (Q*) Scenario 1 a. Prices of optical drives suddenly increase The proceeds cost has increased so the bring home the bacon decreases and eventually the price go up.The bring out curve shifts to the odd. b. A new-fangled market-standard operating(a) system is released to the market but be at least 50% higher(prenominal) than the previous edition This issue is considered new(prenominal) growthion cost so the bring out curve shifts to the left. The tallying decreases and price goes up. c. password spread that local laptop computer computers were contaminated with melamine Demand decreases bec ause people buy less(prenominal) due to the news so the beg curve shifts to the left and the Q and P some(prenominal) decrease. d.Video chatting and internet-on-the-go become fad New engineering makes people buy more of the product so request increases and as a consequence the choose curve shifts to the beneficial and price and quantity both(prenominal) increases. Scenario 2 a. China laptop shapers were permitted to enter the Malaysian market Cheaper products attract consumers, so the require for our product decreases. The shift in the get hold of curve goes to left and the P and Q both decreases. b. Average background knowledge computer prices have plunged to all-time lowsIf desktop computers become cheaper the demand for laptops decreases so the demand curve shifts to left and eventually the P and Q decrease. c. New taxes were oblige to laptops sales (per unit tax) Imposing new taxes to laptops is additional cost for the drudgery. so it affects the supply and the suppl y curve shifts to left. so the P increases and Q decreases. d. A recession/economic gobble upturn cause the income of consumers to decline and cause the prices of laptop parts to increaseWhen consumers income decreases, the demand goes down and the demand curve shifts to the left. On the other hand the prices of laptop parts increases and that makes the business costs to increase so the supply decrease and the supply curve shifts to left. So the quantity decreases while we have an enigmatical equilibrium price. Scenario 3 a. Biggest local laptop manufacturer suddenly become interrupt and the government gives subsidy to consumers to purchase educational and computer-literacy related goodsBy the biggest local laptop manufacturer going bankrupt, our companys supply goes up and eventually the price goes up. The demand curve shifts to the left. So the Q decreases. b. New production techniques were adopted by local laptop manufacturer and prices of inputs in the production of desktop computer decline significantly When the prices for laptops fail the demand goes up and as a consequence the demand curve shifts to the accountability so the price and quantity increase.