Assume That a Computer Is a Normal Good

question 131

Multiple Choice

Assume that a computer is a normal good. An increase in consumer income, other things being equal, would:

• A) cause an upward movement along the demand curve for computers.
• B) cause a downward movement along the demand curve for computers.
• C) shift the demand curve for computers to the left.
• D) shift the demand curve for computers to the right.

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Definitions:

Executory Costs

Expenses related to ongoing maintenance and administration of a lease that are neither fixed nor included in the lease payments.

Annual Payments

Yearly amounts paid or received over the term of a financial instrument or agreement.

Lessor

The party in a lease agreement who owns the leased asset and grants the lessee the right to use the asset for a specified term in exchange for payment.

Amortization Policies

Guidelines or practices a company follows to systematically reduce the book value of its intangible assets over their useful life.