Liquid crystal display LCD screens are a key component in co

Liquid crystal display (LCD) screens are a key component in computer monitors. What would happen in the market for monitors if the price of LCD screens decreased?

Solution

Its supply will increase and will shift rightward.

When there is an increase in price of inputs used, cost of production increases, profitablity decreases and hence supply decreases. on the other hand, if there is a decrease in price of inputs used, cost of production decreases profitability increases and supply increases.