Suppose all of the major computer manufacturers announced that beginning next month there would be major price reductions on their computers. This would cause the current demand for computers to
A) increase.
B) decrease.
C) remain unchanged.
D) increase if the demand for computers was relatively inelastic, but decrease if the demand for computers was relatively elastic.

Question

Quizplus · Accepted Answer

If consumers expect prices to drop in the near future, they are likely to delay their purchases, leading to a decrease in current demand.

Suppose All of the Major Computer Manufacturers Announced That Beginning