How Does Consumer Demand Impact Computer Prices?
What is the likely result of consumers having more money to purchase computers?
a) a decrease in prices for computers and computer accessories.
b) an increase in prices for computers and computer accessories.
c) a decrease in prices for computers, but not computer accessories.
d) an increase in prices for computers, but not computer accessories.
Answer:
The likely result of consumers having more money to purchase computers is:
b) an increase in prices for computers and computer accessories.
When demand for a product increases, manufacturers and sellers can charge higher prices because consumers are willing to pay more. This increase in prices is due to the basic economic principle of supply and demand.
As the demand for computers increases, manufacturers may not be able to produce enough supply to meet the demand, causing prices to rise. Similarly, retailers may raise prices to take advantage of the increased demand.
Therefore, an increase in prices for computers and computer accessories is the most likely result when consumers have more money to purchase computers.
This is because increased demand for these products will lead to increased production and competition among computer manufacturers and retailers, which will eventually drive down prices.