All else equal,a shortage of display screens used in the manufacture of tablet computers would
A) shift the supply curve for tablet computers to the right.
B) shift the supply curve for tablet computers to the left.
C) shift the demand curve for tablet computers to the right.
D) shift the demand curve for tablet computers to the left.

Question

Quizplus · Accepted Answer

A shortage of display screens would lead to an increase in the cost of production for tablet computers, as firms would have to pay more to obtain the necessary input. As a result, firms would be able to produce less output at any given price level, and the supply curve would shift to the left. This would lead to a higher equilibrium price and a lower equilibrium quantity, as the market adjusts to the scarcity of display screens. The demand curve for tablet computers is not affected by the shortage of display screens.

All Else Equal,a Shortage of Display Screens Used in the Manufacture