If Demand for Personal Computers Increases as a Result of an Increase

question 51

Multiple Choice

If demand for personal computers increases as a result of an increase in income,

• A)personal computers must be a normal good
• B)personal computers must be an inferior good
• C)personal computers must be a complement
• D)the substitutes for personal computers must be inferior goods
• E)the substitution effect is larger than the income effect

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Definitions:

Money Supply

The aggregate economic assets in monetary form at a specific period in an economy.

Demand for Goods and Services

The consumers' desire and willingness to pay for products or services at a given price point.

Higher Level of Unemployment

A state in which there is a larger than usual number of people without jobs, indicating increased job scarcity or economic downturns.

Business Cycle

The fluctuations in economic activity characterized by periods of economic expansion and contraction over time.