Draw a supply and demand diagram for the Apple iPod, a normal

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Draw a supply and demand diagram for the Apple iPod, a normal

Draw a supply and demand diagram for the Apple iPod, a normal good, for the month of December, 2005. Denote the initial equilibrium price and quantity as Po and Qo.Suppose during the month of December there is a decrease inhousehold income, and a technological advance inthe manufacture of iPods.&…
Decrease in household income = Demand Curve Shifted Left Increase in technology = Supply Curve Shifted Right Demand = Decreased Supply = Increased Price = Uncertain because you do not know if the demand or supplyis the…

ing factor (ie, if supply increased far more thandemand, then the price would drop and vice versa) Quantity = Also Uncertain for the same reason above

 

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