Suppose, Vacuum Cleaners have an elastic demand and Mobile Phones have an inelastic demand. Now suppose that technological advancement triples the supply of both products. a. Draw two separate diagrams to show what happens in each of the market to the equilibrium price and quantity? (3 marks) b. Which product experiences a larger change in price? (1 mark) c. Which product experiences a larger change in quantity? (1 mark) d. What happens to total consumer spending on each product? [1 mark)

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Suppose, Vacuum Cleaners have an elastic demand and Mobile Phones have an inelastic demand. Now suppose that technological advancement triples the supply of both products.

a. Draw two separate diagrams to show what happens in each of the market to the equilibrium price and quantity? (3 marks)

b. Which product experiences a larger change in price? (1 mark)

c. Which product experiences a larger change in quantity? (1 mark)

d. What happens to total consumer spending on each product? [1 mark)

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