Assuming that tablets are normal goods,which factor will NOT increase demand for tablets?
A) an increase in the incomes of tablet users
B) cool new computer games that can only be played on tablets
C) a very large company that makes tablets going out of business
D) an increase in the price of laptop computers

Question

Quizplus · Accepted Answer

A very large company that makes tablets going out of business would decrease the supply of tablets, not increase demand. A) An increase in the incomes of tablet users would increase demand as customers have more disposable income to spend. B) New computer games that can only be played on tablets would create a new demand for tablets as an exclusive platform for gaming. D) An increase in the price of laptop computers could lead to a substitution effect, where consumers switch to buying tablets instead, increasing demand.

Assuming That Tablets Are Normal Goods,which Factor Will NOT Increase