During the Last Decade, the Price of a Computer Fell

question 328

Multiple Choice

During the last decade, the price of a computer fell every year and the quantity sold increased every year. This experience suggests that the

• A) "law of demand" was definitely contradicted.
• B) "law of supply" was definitely contradicted.
• C) demand curve shifted rightward.
• D) supply curve shifted rightward.

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Definitions:

Input-Process-Output Model

A framework used to understand how groups transform inputs (resources, information, etc.) through processes (communication, decision-making) to produce outputs (solutions, decisions).

Social Exchange Theory

A theory suggesting that human relationships are formed based on a subjective cost-benefit analysis and the comparison of alternatives.

Social Exchange Theory

A theoretical framework suggesting that social behavior is the result of an exchange process to maximize benefits and minimize costs.

Positives and Negatives

The favorable and unfavorable aspects or consequences of a situation or action.