Using a Change in Supply And/or Demand,explain the Following Phenomena

question 60

Essay

Using a change in supply and/or demand,explain the following phenomena:
a.All else constant,gasoline prices are higher in summer than winter months.
b.At the same time that the quality of personal computers has been increasing,the price of personal computers has been falling.

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Definitions:

Interest-Bearing Note

A debt instrument that pays interest to the lender over the term of the loan.

Put Option

A financial contract giving the option holder the right, but not the obligation, to sell a specified amount of an underlying asset at a set price within a specified time.

Fair Value Hedge

A hedge that protects against changes in the fair value of assets, liabilities, or firm commitments through the use of a derivative.

British Pounds

The currency of the United Kingdom, also known as GBP, which is one of the world's major currencies.