The spokesman of MIIT provides the following reasons for the above changes. With the widespread of the pandemic, many students and workers are required to study and work from home using Zoom. Having an electronic device or gadget such as a laptop PC is thus a must for them. At the same time, the production of chips, an indispensable part of making laptop PC, halted due to the strict social distancing measures brought by the dynamic zero-Covid policy in China.
a. With the aid of a well-labeled demand-and-supply diagram, show the above impacts on the new laptop PC market's equilibrium price and quantity in China in 2021. Briefly explain your answers.
b. If the cross-price elasticity of demand between Good X and new laptop PC is 0.4, give an example of Good X. Explain your answers.
