Equilibrium: End of Chapter Problem In the following example, there is a major event and a minor event. Determine whether each change relates to demand or to supply, adjust the graph accordingly, and then describe the impact on price and quantity and the relative magnitudes of the price and quantity changes. Major event: The proliferation of fast, reliable, affordable (or free) wi-fi and cellular signals increases the usability of smartphones, Minor event: The production of smartphones is marked by modest technological advances, The major event leads to an increase in Smartphones and the minor event leads to Supply in Therefore, equilibrium quantity will go substantially
the nor even ICHOS Supply in Therefore, equilibrium quantity will go substantially and equilibrium price will less substantially Price Demand Quantity