Please Simply examine four (4) shifts to supply and/or demand for Sony PS4 product. These can be events that have happened, or ones that will happen/you will make happen.
Show me how and make a reasonable sentence.
1) Event 1: Launch of a close substitute: If a competitor of Sony launches a substitute gaming product of Sony PS4, the demand for Sony PS4 will go down. This will result in a leftward shift in the demand curve of Sony PS4.
2) Event 2: Economic slowdown: If there is a global economic slowdown, the demand for Sony PS4 at the given price will go down. This will result in a leftward shift of the demand curve.
3) Event 3: Fall in Wage rate: If the wage rate of Sony falls, production of PS4 will be cheaper. This will increase the supply of PS4 at the existing price and the supply curve will shift towards the right.
4) Event 4: Drop in price of the processor: If the price of the processor used in PS4 decreases, it will be cheaper to produce PS4. This will increase supply and the supply curve will shift towards the right as Sony would like to produce more PS4 at the given market price.
Get Answers For Free
Most questions answered within 1 hours.