Assuming the most typical shapes of the demand and supply curves,which of the following could lead to an increase in the current equilibrium price for personal computers?
A) a decrease is the price of computer chips
B) a decrease in buyers' incomes,assuming that computers are a normal good
C) a technological improvement that reduces manufacturing costs
D) expectations of a higher future price
E) an increase in the price of computer software

Question

Quizplus · Accepted Answer

Expectations of a higher future price can lead to an increase in current demand, as consumers may want to purchase before prices rise, thus increasing the current equilibrium price.

Assuming the Most Typical Shapes of the Demand and Supply