Cinthya Works for Dell Computers in the Purchasing Department and Has

question 73

Multiple Choice

Cinthya works for Dell Computers in the purchasing department and has been receiving more orders related to tablet and portable computers compared to desktop computers. She's noticed a significant reduction in the number of monitors the company is manufacturing as well as traditional desktop systems. It seems that fewer individuals are purchasing desktop computers for their home offices and many businesses have switched to portable computers since the workforce prefers the capability to work "on the go" rather than be required to complete work at the office. Therefore, it's likely the demand for desktop computers and monitors is

• A)derived.
• B)fluctuating.
• C)joint.
• D)inelastic.

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Definitions:

Consumption

The act of using goods and services for personal needs or to satisfy consumer demands.

APS

Average Propensity to Save, the proportion of total income that is saved by the economy or an individual.

Consumption

Pertains to the aggregate volume of products and services that are purchased and consumed by families and people.

MPC

The marginal propensity to consume, which is the fraction of additional income that a household spends on consumption.