Question

"Over the past twenty years, the price of personal computers has decreased in spite of increased demand for personal computers. This can best be explained by:"

A."suppliers of personal computers are unresponsive to price changes, meaning that prices have not increased even though demand has increased."

B."demanders of personal computers are very price responsive, meaning that consumers will not put up with higher computer prices."

C."computers are an inferior good, so increased demand simply results in lower prices."

D. a larger increase in supply of personal computers has occurred because of the decreased cost of producing personal computers.

1. Suppose OPEC decided to decrease the supply of oil offered for sale on the world market. What will be the effect on the market for gasoline?

   		increase in the price and quantity.
   		increase in the price and a decrease in the quantity.
   		unpredictable change in price and increase in the quantity.
   		increase in the price and unpredictable change in the quantity.

2. "The cost of sensors used in making digital camera falls, while a successful ad campaign makes digital cameras more fashionable. As a result, the equilibrium relative price of digital cameras ____ and the equilibrium quantity ____."

   		increase; increase.
   		increase; may increase or decrease-- can't really tell without more info.
   		may increase or decrease; increase.
   		decrease; increase.

3. Demand will not change if there is a change in the:

   		Buyers income
   		Price of the product
   		Price of a substitute product
   		Popularity of the product

Answer 1

Q1. A larger increase in supply of personal computers has occurred because of the decreased cost of producing personal computers.

Q2. There will be increase in the price and decrease in the quantity.

Q3. Price May increase or decrease, quantity will increase

There are many other variables which can influence the price , the main reason is we don't know how much demand increase, so we can't conclude about price.

Q4. Demand will not change if there is a change in price of product. When price changes it's the Quantity Demanded which changes not Demand in other words there will be movement along the demand curve not the shift of demand curve.