If the Demand Curve for Desktop Computers Shifts Rightward and at the Same

question 283

Multiple Choice

If the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward,then

• A)the equilibrium price definitely rises.
• B)the equilibrium price definitely falls.
• C)the equilibrium price definitely remains the same.
• D)the equilibrium quantity definitely increases.
• E)More information is needed to determine the effect on the equilibrium price.

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Definitions:

Expected Revenue

The projected amount of money that a company anticipates receiving from sales or services within a certain period.

Reserve Price

The minimum price set by the seller that must be met or exceeded at an auction for the sale to proceed.

Profit

The financial gain made after all expenses have been deducted from total revenues.

English Auction

A bidding process where participants bid openly against one another, with each subsequent bid higher than the previous, until the highest bid wins.