As the Price of Computers Falls,the Quantity Demanded of Computers

question 61

Multiple Choice

As the price of computers falls,the quantity demanded of computers increases.This is an application of

• A)the law of supply
• B)production possibility expansion
• C)the law of demand
• D)needs versus wants

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Definitions:

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, representing the additional value created by the firm beyond that required to compensate its resource suppliers.

Shortage

A condition where the demand for a product exceeds its supply in the market.

Ceiling Price

Ceiling price is a legally imposed maximum price on goods or services, above which transactions cannot legally occur, often implemented to prevent price gouging during shortages.

Maintenance

The upkeep and repair of machinery, equipment, and buildings to ensure their optimum working condition.