One Reason the Demand for Laptop Computers Might Increase Is

question 52

Multiple Choice

One reason the demand for laptop computers might increase is a

• A)change in preferences as laptops have become more portable, with faster processors and larger hard drives.
• B)decrease in income if laptops are a normal good.
• C)fall in the price of a laptop computers.
• D)poor quality performance record for laptop computers.
• E)fall in price of desktop computers.

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Definitions:

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a specified time frame.

Speculative Investment

An investment with a high degree of risk, where the investor anticipates significant returns in exchange for the risk of losing most or all of the invested amount.

GAAP Accounting

Generally Accepted Accounting Principles, a set of rules and standards for financial reporting and accounting practices in the United States.

Unrealized Gain

The hypothetical profit on an investment that has not yet been sold, and thus, not yet converted into actual cash.