Consider a market for computers. Due to a single shock, we observe the market reaches a new equilibrium with a higher price and higher quantity than the initial equilibrium. 

1) Briefly explain what happened in this market, i.e., what happened to the demand and supply.(2 points) 

2) Use a supply-demand diagram to support your answer. 

3) Propose a couple of scenarios that may result in this change.

Answer rating: 100% (QA)

1 In this market there has been a shift in both demand and supply curves leading to a new equilibriu... View the full answer