Asked by Timothy Hauser on Jul 20, 2024
Verified
The effect of a decrease in the price of personal computers on consumer demand,other things constant,is most likely to be represented by a:
A) leftward shift of the demand curve for personal computers.
B) leftward movement along the demand curve for personal computers.
C) rightward shift of the demand curve for personal computers.
D) rightward movement along the demand curve for personal computers.
E) decrease in the slope of the demand curve for personal computers.
Demand Curve
A graphical representation of the relationship between the price of a good and the quantity demanded by consumers.
Personal Computers
Computing devices designed for individual use, as opposed to computers intended for shared or organizational usage.
Price Decrease
A reduction in the monetary value or cost of goods and services.
- Identify the differences between movements along the demand curve and the entire demand curve shifting.
Verified Answer
BN
Becky NchotuJul 21, 2024
Final Answer :
D
Explanation :
A decrease in the price of personal computers, with other factors remaining constant, leads to an increase in the quantity demanded. This is represented by a movement along the demand curve to the right, not a shift of the demand curve itself. Shifts in the demand curve are caused by factors other than the price of the good itself, such as changes in income, preferences, or prices of related goods.
Learning Objectives
- Identify the differences between movements along the demand curve and the entire demand curve shifting.