REDO ASSIGNMENT Michael Lin Supply and Demand: Raspberry Pi B= price cut

By Michael Lin

http://www.wired.co.uk/article/raspberry-pi-price-drop

The price of the Raspberry pi B+microcomputer has recently been dropped from $35 to $25. The reason behind this is because there have been production optimizations for this product according to the Raspberry pi foundation. The reason for these production optimizations is not specified within this article, however, it is likely caused by either a decrease in the cost of factors of production or an improvement in production technology. These factors are represented in the graph by a shift in the supply curve to the right. The decreased price has caused the quantity demanded to increase and shift right, as it is more desirable at a lower price.

 

 

supply and demand

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