A reduction in computer chip prices decreases microcomputer supply due to lower production costs.
A reduction in the price of computer chips used to produce the computers would reduce the supply of microcomputers. When the cost of computer chips decreases, it becomes cheaper to produce microcomputers, incentivizing producers to increase output, thereby reducing supply. This is due to the fact that a decrease in production costs makes it more profitable for companies to supply fewer units at lower prices.
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