Suppose that the market for computers is initially in equilibrium. Further suppose that there is an increase in the price of computer software. The equilibrium price will fall; the equilibrium quantity will fall.

Question

Quizplus · Accepted Answer

An increase in the price of computer software, a complementary good, will decrease the demand for computers, leading to a lower equilibrium price and quantity.

Suppose That the Market for Computers Is Initially in Equilibrium