Posted by Paul on .
Suppose Intel Inc. and other chip makers utilize a new techology for producing the flash memory chips used in digital music players. How would you Illustrate and Explaine the resulting effects on the Equilibrium price and quantity in the flash chip market and the digital player market.
Draw simple supply and demand curves. The new technology, likely, lowers the cost of production at all levels. So, shift the supply curve out. What happens to price? quantity?