1. From the article: The price increases have a twofold purpose for TSMC as it addresses the shortage. In the short term, higher prices push down demand and preserve supply for customers who have no other choice. In fact, higher prices would not push down (that is, decrease) demand for computer chips. Explain why.

2. From the article: The price increases have a twofold purpose for TSMC as it addresses the shortage. In the short term, higher prices push down demand and preserve supply for customers who have no other choice. Draw and label a graph that depicts a demand curve for a customer who has no other choice but to pay a higher price for a product. What is the value of the elasticity of this demand curve?

3. Draw and label a graph that depicts a linear, downward-sloping demand curve. Price changes affect a firms total revenue. In response to a decrease in price, there is a price effect and a quantity effect on total revenue. Label the price and quantity demanded for one point on the demand curve P1 and Q1. Label the price and quantity demanded for another point on the demand curve P2 and Q2. (P1 should be the higher price). Indicate in the graph the price effect and the quantity effect on total revenue from a decrease in price from P1 to P2.

4. Refer to the graph you drew to answer the previous question. The slope along a linear, downward-sloping demand curve has a constant value. The elasticity of demand along a linear, downward-sloping demand curve does not have a constant value. Briefly explain why.

5. From the article: The company [TSMC] has said it plans to spend a total of $100 billion over the next three years on new factories and equipment as well as research and development. It is expanding its production capacity in Nanjing, China, and has started construction on a $12 billion facility in Arizona. Economists separate the relationship between a firms level of production and cost into the short run and the long run. TSMCs plan to spend $100 billion over three years to expand its production capacity is a long-run decision. Briefly explain why.

6. Refer to the previous question. Describe an example of a short-run production decision TSMC could make to increase its output of computer chips.

a 6:26 World's Largest Chip... The world's largest contract chip maker is raising prices by as mach as 20%, according to people familiar with the matter, a move that could result in consumers paying more for electronics Taiwan Semiconductor Manufacturing Co. TSM.1.41 plans to increase the prices of its most advanced chips by roughly 30, while less advanced chips used by customers like automakers will cost about 20% more, these people said. The higher prices will generally take effect late this year or text year, the people said Apple Inc. is one of TSMC'S Largest customers and its iPhones use advanced microprocessors made in TSMC foundries. It couldn't be determined how much more Apple would pay. A TSMC spokeswoman declined to comment on prices but said the company works closely with customers. An Applespokeswoman didn't immediately respond to request for comment The price increases come in the wake of a global semiconductor shortage that has affected Apple and most car makers, including General Motors Co. and Toyota Motor Corp. In August, GM said it had to Idle three factories in North America that make large pickup tracks the company's biggest moneymaker. Last week, Tonta said it would curb production by 40% in September The price increases have a twofold purpose for TSMC as it addresses the shortage. In the short term, higher prices push down demand and preserve supply for customers who have no other choice. Over the longer term, the higher income will help TSMC invest aggressively in new capacity, according to analysts. The company has said it plans to spend a total of 100 billion over the next three years on new factories and equipment as well as research and development. It is expanding its production capacity in Nanjin China, and has started constriction on a $12 billion facility in Arizona Chips are only one of many costs that go into a car er smartphone, but TSMC's price increases could eventually filter down to consumers next year unless brand-name companies decide to absorb the higher cost Dashboard Calendar To Do Notifications Inbox 6:26 a World's Largest Chip... Alreads, chip shortages have driven up prices for laptops, which are in high demand because more people are working remotely Apple warned in its latest camnings call that the chip short, which hit its iPad tablets and Mac computers earlier in the year, would affect iPhone production in the quarter that ends in September Andrew to a semiconductor analyst at Sinolink Securities said price increases would preserve TSMC's profit margins. He said the Taiwanese company had spent too much of its huge capital budget on the most advanced chips, losing market share in less advanced chips *TSMC is finally going to increase their prices to go with the trent, making up for misallocating their capital spending" Mr. La said One person whose company is affected by the price increases said they would reach all of TSMC's customers, including long-term partners The chip maker usually negotiates prices in August or September for products to be delivered the following year, another person said. The company's market dominance gives it more pricing power than suppliers usually enjoy. TSMC accounts for more than half of the global semiconductor foundry market by revenue, according to Taiwanese research firm TrendForce, and it makes more than 90% of the world's most advanced.chips MORE ON THE CRUNCH toate Shoes Chie Shed. Statistiche In the April-June quarter. TSMC reported net profit equivalent to 56.5 billion on net sales of $13.3 billion. Its et profit margin for the quarter of 36% would be the envy of most companies, but its cash flow is typically well below its prodit because it plows much of the money it makes back into new factories and equipment Bernstein analysts said the price increases would likelyft TSMC'S revenue by 10to 15 and increase earnings by 205 to 30% adding that the impact would be seen in the first quarter of next year. Before the pandemic, TSMC Sally would offer regular discounts for its big customers, but Chief Executive C. Weitold clients in a March letter his company would no longer do that starting at the end of this war Dashboard Calendar To Do Notitications Inbox 6:26 World's Largest Chip... a 1 making up for misallocating their capital spending." rt said One person whose company is affected by the price increases said they would reach all of TSMC's customers, including long-term partners The clip maker usually negotiates prices in August or September for products to be delivered the following year, another person said. The company's market dominance gives it more pricing power than suppliers usually enjoy. TSMC accounts for more than half of the global semiconductor foundry market by revenue, according to Taiwanese research firm TrendForce, and it makes more than 90% of the world's most advanced chips MORE ON THE CHIP CRUNCH Toate Cut Out Shah OSSE... The Man In the April-June quarter. TSMC reported net pratit equivalent to 568 billion on net sales of $13.3 billion. Its net profit margin for the quarter of 36% would be the envy of most companies, but its cash flow is typically well below its profit because it plows much of the money it makes back into new factories and equipment Bernstein analysts said the price increases would likely lift TSMCS revenue by 10% to 15 and increase earnings by 20% to 30%, adding that the impact would be seen in the first quarter of next year Before the pandemic. TSMC usually would offer regular discounts for its big customers, but Chief Executive C.C. We told clients in a March letter is company would no longer do that starting at the end of this year. Mr. Wel has said the company is facing ring manufacturing costs because of more expensive raw materials and constant investment to expand production and develop more advanced chips Write to Yang Jie atjie yang cows.com. Stephanie Yangat stephanieyanews.com and Yoko Kubota at yako ubotasi.com Appeared in the past 27,200 pridones Provider 10 Dashboard Calendar To Do Notifications Inbox a 6:26 World's Largest Chip... The world's largest contract chip maker is raising prices by as mach as 20%, according to people familiar with the matter, a move that could result in consumers paying more for electronics Taiwan Semiconductor Manufacturing Co. TSM.1.41 plans to increase the prices of its most advanced chips by roughly 30, while less advanced chips used by customers like automakers will cost about 20% more, these people said. The higher prices will generally take effect late this year or text year, the people said Apple Inc. is one of TSMC'S Largest customers and its iPhones use advanced microprocessors made in TSMC foundries. It couldn't be determined how much more Apple would pay. A TSMC spokeswoman declined to comment on prices but said the company works closely with customers. An Applespokeswoman didn't immediately respond to request for comment The price increases come in the wake of a global semiconductor shortage that has affected Apple and most car makers, including General Motors Co. and Toyota Motor Corp. In August, GM said it had to Idle three factories in North America that make large pickup tracks the company's biggest moneymaker. Last week, Tonta said it would curb production by 40% in September The price increases have a twofold purpose for TSMC as it addresses the shortage. In the short term, higher prices push down demand and preserve supply for customers who have no other choice. Over the longer term, the higher income will help TSMC invest aggressively in new capacity, according to analysts. The company has said it plans to spend a total of 100 billion over the next three years on new factories and equipment as well as research and development. It is expanding its production capacity in Nanjin China, and has started constriction on a $12 billion facility in Arizona Chips are only one of many costs that go into a car er smartphone, but TSMC's price increases could eventually filter down to consumers next year unless brand-name companies decide to absorb the higher cost Dashboard Calendar To Do Notifications Inbox 6:26 a World's Largest Chip... Alreads, chip shortages have driven up prices for laptops, which are in high demand because more people are working remotely Apple warned in its latest camnings call that the chip short, which hit its iPad tablets and Mac computers earlier in the year, would affect iPhone production in the quarter that ends in September Andrew to a semiconductor analyst at Sinolink Securities said price increases would preserve TSMC's profit margins. He said the Taiwanese company had spent too much of its huge capital budget on the most advanced chips, losing market share in less advanced chips *TSMC is finally going to increase their prices to go with the trent, making up for misallocating their capital spending" Mr. La said One person whose company is affected by the price increases said they would reach all of TSMC's customers, including long-term partners The chip maker usually negotiates prices in August or September for products to be delivered the following year, another person said. The company's market dominance gives it more pricing power than suppliers usually enjoy. TSMC accounts for more than half of the global semiconductor foundry market by revenue, according to Taiwanese research firm TrendForce, and it makes more than 90% of the world's most advanced.chips MORE ON THE CRUNCH toate Shoes Chie Shed. Statistiche In the April-June quarter. TSMC reported net profit equivalent to 56.5 billion on net sales of $13.3 billion. Its et profit margin for the quarter of 36% would be the envy of most companies, but its cash flow is typically well below its prodit because it plows much of the money it makes back into new factories and equipment Bernstein analysts said the price increases would likelyft TSMC'S revenue by 10to 15 and increase earnings by 205 to 30% adding that the impact would be seen in the first quarter of next year. Before the pandemic, TSMC Sally would offer regular discounts for its big customers, but Chief Executive C. Weitold clients in a March letter his company would no longer do that starting at the end of this war Dashboard Calendar To Do Notitications Inbox 6:26 World's Largest Chip... a 1 making up for misallocating their capital spending." rt said One person whose company is affected by the price increases said they would reach all of TSMC's customers, including long-term partners The clip maker usually negotiates prices in August or September for products to be delivered the following year, another person said. The company's market dominance gives it more pricing power than suppliers usually enjoy. TSMC accounts for more than half of the global semiconductor foundry market by revenue, according to Taiwanese research firm TrendForce, and it makes more than 90% of the world's most advanced chips MORE ON THE CHIP CRUNCH Toate Cut Out Shah OSSE... The Man In the April-June quarter. TSMC reported net pratit equivalent to 568 billion on net sales of $13.3 billion. Its net profit margin for the quarter of 36% would be the envy of most companies, but its cash flow is typically well below its profit because it plows much of the money it makes back into new factories and equipment Bernstein analysts said the price increases would likely lift TSMCS revenue by 10% to 15 and increase earnings by 20% to 30%, adding that the impact would be seen in the first quarter of next year Before the pandemic. TSMC usually would offer regular discounts for its big customers, but Chief Executive C.C. We told clients in a March letter is company would no longer do that starting at the end of this year. Mr. Wel has said the company is facing ring manufacturing costs because of more expensive raw materials and constant investment to expand production and develop more advanced chips Write to Yang Jie atjie yang cows.com. Stephanie Yangat stephanieyanews.com and Yoko Kubota at yako ubotasi.com Appeared in the past 27,200 pridones Provider 10 Dashboard Calendar To Do Notifications Inbox