What Effect Do Computer Chip Sellers' Expectations of Falling Chip

question 21

Multiple Choice

What effect do computer chip sellers' expectations of falling chip prices in the coming months have on the current computer chip market?

• A) The supply of computer chips increases, pushing down the equilibrium price and quantity.
• B) The supply of computer chips increases, pushing down the equilibrium price and increasing the equilibrium quantity.
• C) The demand for computer chips increases, pushing down the equilibrium price and increasing the equilibrium quantity.
• D) The demand for computer chips decreases, pushing down the equilibrium price and increasing the equilibrium quantity.

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Definitions:

Citric Acid Cycle

A series of chemical reactions used by all aerobic organisms to generate energy through the oxidation of acetate derived from carbohydrates, fats, and proteins into carbon dioxide and chemical energy in the form of adenosine triphosphate (ATP).

Citrate

A salt or ester of citric acid that plays a key role in the Krebs cycle, a central pathway in cellular respiration.

Oxaloacetate

A four-carbon molecule that acts as a key intermediate in the citric acid cycle and gluconeogenesis.

Mitochondrial Intermembrane

The space located between the inner and outer membranes of mitochondria, involved in the electron transport chain.