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 decrease the cost of producing computers, which would shift the supply curve to the right, resulting in a lower equilibrium price and a higher equilibrium quantity.

Exhibit 4-5 Supply and Demand Curves for Computers