Suppose That the Demand Curve for Desktop Computers Shifts Rightward

question 252

Multiple Choice

Suppose that the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward.Which of the following could have caused these shifts?

• A) Desktop computers are a normal good and incomes increased, while more firms entered the market.
• B) The price of a laptop computer, a substitute for desktop computers, fell, and the cost of producing desktop computers decreased.
• C) Consumers purchased more computers because of the Christmas season, and the labor costs of producing desktop computers decreased.
• D) Desktop computers are a normal good and incomes increased, while the labor costs of producing personal computers increased.
• E) Desktop computers are a normal good and incomes decreased, while the labor costs of producing personal computers increased.

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Definitions:

Unemployment

The situation in which individuals who are capable of working are actively seeking work but are unable to find employment.

Cyclical

Pertaining to fluctuations in economic activity occurring due to the natural business cycle, including expansions, peaks, recessions, and troughs.

Structural

Relating to the underlying or fundamental aspects of something, especially with regard to economic sectors or market changes.

Aggregate Supply Curve

A graphical representation showing the total quantity of goods and services that producers are willing and able to supply at different price levels in an economy.