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:

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its quick assets.

Current Ratio

A metric used to evaluate a corporation's capability to meet obligations that are short-term or due within a year.

Short-Term Investments

Investments that are readily marketable and intended to be converted into cash within the next year or operating cycle, whichever is longer.

Total Current Liabilities

Total current liabilities are the sum of all debts and financial obligations a company owes within the next year.