Question

if the price of flash memory chips used in manufacturing smartphones decreases, what will happen in the market for smartphones?
this would cause smartphone to causing the equilibrium price to and the equilibrium quantity to
demand
supply

Explanation:

Flash memory chips are an input for smartphone production. A decrease in input price (flash memory chips) reduces production costs for smartphone manufacturers. According to supply - demand theory, when production costs decrease, the supply of the good (smartphones) increases. An increase in supply (right - shift of the supply curve) leads to a decrease in the equilibrium price and an increase in the equilibrium quantity. So the first blank is "supply", the second blank is "increase", the third blank is "decrease", and the fourth blank is "increase".

Answer:

1. The first dropdown: supply
2. The second dropdown: increase
3. The third dropdown: decrease
4. The fourth dropdown: increase