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ECN 601 Chapter 3 Technical Question 1

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ECN 601 Chapter 3 Technical Question 1
Technical Questions

1. Consider the demand for computers. For each of the following, state the effect on demand:

a. An increase in consumer incomes
Answer: Demand will increase

b. An increase in the price of computers
Answer: As the price of computers increase, the demand will decrease.

c. A decrease in the price of Internet service providers Answer: As the price of internet service decreases, the demand will increase.

d. A decrease in the price of semiconductors
Answer: As price decreases the demand will increase for semiconductuctors.

e. It is October, and consumers expect that computers will go on sale just before Christmas
Answer: Demand will decrease in October. Consumers will likely what for computers to go on sale just before Christmas.
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