Q17 There is an increase in demand for personal computers at the same time their input costs fall. What can we expect?Price will fall, but the effect on quantity sold is uncertain.The quantity sold will decline, but the effect on price is uncertain.Price will rise, but the effect on quantity sold is uncertain.The quantity sold will increase, but the effect on price is uncertain.

Cost that is incurred when a good is produced is called cost of production

Answered: There is an increase in demand for…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter8: Understanding Markets And Industry Changes

Section: Chapter Questions

Problem 3MC

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If demand falls as a result of a change in tastes, it is likely that as a result: Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a price will fall and then demand will increase. b price will fall and then demand will not change. c price will rise and then demand will not change. d price will rise and then demand will decrease.
When a company offers a new product or service, they estimate how much of that product or service people will want at different prices. This is referred to as the product or service demand. As the price of a product or service increases, the demand usually decreases, and this drives the price down. Companies use the estimated demand to determine how much of a product or service they are willing to supply at different prices. As the price of a product or service increases, companies are willing to supply more of it because they will earn more money. If you graph the demand and the supply curves on the same xy-plane, they will sometimes intersect at the point where the price and the supply are in equilibrium. Consider the scenario below. Yaseen is a local artist who wants to increase the amount of money she earns every month by selling at-home painting kits. These kits will include a photograph of the finished painting, a link and password to Yaseen’s YouTube channel where she will…
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