4
QuizMultiple Choice

Inflation and Stagflation — Quiz

Question 4 • Personal Finance and Economics

Consumers having more money to purchase computers will most likely result in

Answer
A
an increase in prices for computers and computer accessories.
B
an increase in prices for computers, but not computer accessories.
C
a decrease in prices for computers, but not computer accessories.
D
a decrease in prices for computers and computer accessories.

Explanation

When consumers have more money to spend, they are likely to buy more computers, increasing demand for computers and putting upward pressure on their prices. Computer accessories are commonly used with computers, so greater computer purchases also increase demand for accessories and can raise their prices. The best answer is an increase in prices for computers and computer accessories.

AI-written and checked against the verified answer.

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