Given the Demand Curve for Laptop Computers,if the Government Began

question 65

Multiple Choice

Given the demand curve for laptop computers,if the government began to encourage households to own a computer by providing a subsidy to each family that buys one,

• A) both the equilibrium price and quantity of laptops will increase
• B) both the equilibrium price and quantity of laptops will decrease
• C) the equilibrium price of laptops will increase but the equilibrium quantity will decrease
• D) the equilibrium price of laptops will decrease but the equilibrium quantity will increase
• E) subsidies to households have no effect on either the supply or demand

---

Definitions:

LDCs

Acronym for Less Developed Countries, referring to countries with lower levels of economic development and standard of living.

Average Workweek

The typical number of hours worked in a week by employees in a particular sector or economy.

Economic Growth

An increase in the amount of goods and services produced per head of the population over a period of time.

Population Growth

Population growth refers to the increase in the number of individuals in a population, commonly measured as the percentage change in population over a specific period.