"As Fewer People Buy Computers, the Demand for Internet Service

question 132

Multiple Choice

"As fewer people buy computers, the demand for Internet service will decrease and the price of Internet service will increase.The rise in the price of Internet service will increase the supply of Internet service." This statement is _______ because _______ .

• A)true; the increase in the price of Internet service increases the supply of Internet service to eliminate the shortage
• B)true; when the demand for Internet service increases, the supply of Internet service increases so that the price of Internet service does not increase
• C)false; a decrease in demand for Internet service does not increase the price of Internet service and an increase in the price of Internet service does not increase the supply of Internet service
• D)false; the decrease in the demand for Internet service creates a surplus and to eliminate the surplus, supply increases
• E)true, when the demand for Internet service increases, the supply of Internet service increases too so that no surplus occurs

---

Definitions:

Primary Market

The financial market where new securities are issued and sold for the first time to investors, facilitating funds raising for corporations and governments.

Investment Banker

A professional who advises and assists companies on capital market transactions like IPOs, mergers, and acquisitions.

Market Price

The current price at which an asset or service can be bought or sold in the marketplace.

Financial Media

Media outlets and platforms that specialize in reporting news and analysis on the financial and economic sectors, including markets and investments.