Which of the Following Would Cause the Current Supply of IPods

question 100

Multiple Choice

Which of the following would cause the current supply of iPods to increase?

• A) an economic boom, which increases the amount that people are willing to spend on personal electronics
• B) a decrease in the price of songs on iTunes
• C) producers expecting that the future price of iPods will decrease
• D) an increase in the wages offered to technicians building iPods

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Definitions:

Tax Cut

A reduction in the amount of taxes imposed by a government, aiming to stimulate economic growth or achieve other policy objectives.

Disposable Income

After income taxes are taken out, disposable income represents the funds available to a household or individual for saving and spending purposes.

APS

Average Propensity to Save, which is the fraction of total income that is saved by an economy or individual.

Income

The financial gain received by an individual or entity, usually in the form of wages, salaries, or returns from investments.