"As the price of personal computers continues to fall,demand increases." This headline is inaccurate because
A) a change in the price of personal computers shifts the demand curve.
B) a change in the price of personal computers shifts the supply curve.
C) the statement is backwards: increased demand leads to lower prices.
D) falling prices of personal computers increase quantity demanded,not demand.
E) falling prices of personal computers increase quantity supplied.

Question

Quizplus · Accepted Answer

Falling prices of personal computers do not actually increase demand; they increase quantity demanded. Demand is the willingness and ability of consumers to buy a product at a certain price, while quantity demanded refers to the amount of a product that consumers are willing and able to buy at a specific price. Therefore, the statement in the headline is not accurate.

"As the Price of Personal Computers Continues to Fall,demand Increases