Question

12.We're considering what happens in the market for PS4's today. The price of the plastic used to make PS4's increases. Demand for PS4's will____Supply_____Equilibrium Price____

Equilibrium Quantity

Answer 1

Q-12 :: ANSWER :: We're considering what happens in the market for PS4's today. The price of the plastic used to make PS4's increases. Demand for PS4's wil Decrase Supply Decrease Equilibrium Price Increase Equilibrium Quantity Decease

=> Explanation ::

An Increase In Raw material Cause Increase In The Price Because cost Of Production increased Here PS4 Plastic Price Increased So cost Of Production Increase Which Leads to increase in Equilibrium Price and Decrease In Equilibrium Quantity So It Cause Decrease In The Demand and supply Of PS4 Because Of The High Price.