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 demand to increase causing the equilibrium price to increase and the equilibrium quantity to increase .

Answer 1

The price of the smartphone will decrease. Users need smart phones having greater memory power. Present market demands more money with increased memory power. If the price of memory chips decrease naturally the companies will increase the memory power of phones and will lead to decrease in the price of the smartphones.