In the market for flash memory drives ( a normal good), exlpaing whether the fol

Question

In the market for flash memory drives ( a normal good), exlpaing whether the following events would cause an increase or a decrease in demand or an increase or decrease in the quantity demanded. Also explaing what happens to the equilibrium quantity and the market clearing price.
a) there are increases in the prices of storage racks and boxes for flash memory drives.
b) there is a decrease in the price of computer drives that read the information contained on flash memory drives.
c) there is a dramatic increase in the price of secure digital cards that, like flash memory drives, can be used to store digital data.
d) a booming economy increases the income of the typical buyer of flash memory drives.
e) consumers of flash memory drives anticipate that the price of this good will decline in the futute.

Explanation / Answer

For the question that asks for the different in demand or in quantity demanded, you will need to understand that quantity demanded is purely influenced by price
and demand is influenced by certain conditions like consumer taste, compliments of goods, etc.

Look at the Law of Supply and Demand for help for equilibrium quantity and price.

A) Decrease in demand, equilibrium quantity decreases, price decreases.

Reason: When a compliment for a good is increased in price, demand decreases(but NOT quantity demanded because the product's price was directly increased) When demand decreases, equilibrium quantity and price should decrease.

B) Increase in demand, equilibrium quantity increases, price increases.

Reason: Compliment of a good

C) Increase in demand, equilibrium quantity increases, price increases.

Reason: Supplement of a good

Reason: People are buying more flash memory drives because the digital cards have become more expensive.

D) Increase in demand, equilibrium quantity increases, price increases

Reason: Consumer income

E) Decrease in demand, equilibrium quantity decreases, price decreases

Reason: The self-fulfilling prophecy. When people think sometimes will happen to a price of a product, security, etc they will act in a way that will cause their prophecy to happen.

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