7
AssignmentMultiple Choice

Money

Question 7 • * HSA 26-27 Economics

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

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

Explanation

When consumers have more money to spend, they are likely to buy more computers. This raises demand for computers, which tends to push their prices up. More computer purchases can also increase demand for accessories used with them, tending to raise accessory prices as well. Therefore, the most likely result is an increase in prices for both.

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