"As the Price of Personal Computers Continues to Fall, Demand

question 118

Multiple Choice

"As the price of personal computers continues to fall, demand increases." This headline is inaccurate because:

• A)a change in the price of personal computers shifts the demand curve.
• B)a change in the price of personal computers shifts the supply curve.
• C)the statement is backwards: increased demand leads to lower prices.
• D)a falling price for personal computers increases quantity demanded, not demand.

---

Definitions:

Dominates

To have control or exert the greatest influence over a particular situation, area, or group.

Increasing Chances

Efforts made to enhance the likelihood of achieving a desired outcome or success.

Capabilities

The skills, resources, and abilities that an organization or individual possesses.

Demands

Requests or calls for something to be supplied or performed, often with a sense of urgency or necessity.