Exhibit 4-5 Supply and demand curves for computers

-Which of the following changes could cause the computer market to change as shown in Exhibit 4-5?
A) Lower costs for computer chips and motherboards.
B) The failure of several computer manufacturers.
C) Higher prices for computer software.
D) More features and greater ease of use.

Question

Exhibit 4-5 Supply and demand curves for computers
​ 
-Which of the following changes could cause the computer market to change as shown in Exhibit 4-5?
A) Lower costs for computer chips and motherboards. 
B) The failure of several computer manufacturers. 
C) Higher prices for computer software. 
D) More features and greater ease of use.

Quizplus · Accepted Answer

Lower costs for computer chips and motherboards would increase the supply of computers, shifting the supply curve to the right and decreasing the equilibrium price, as shown in Exhibit 4-5. None of the other changes listed would necessarily cause such a shift in the market.

Exhibit 4-5 Supply and Demand Curves for Computers