over the past few decades, the cost of producing computers has decreased. this has caused computer prices to…
over the past few decades, the cost of producing computers has decreased. this has caused computer prices to fall as well. according to the law of demand, what will happen in the market for computers based on this price change?\ndemand will decrease.\ndemand will increase.\nthe quantity demanded will decrease.\nthe quantity demanded will increase.
Answer
Brief Explanations:
The law of demand states that, ceteris paribus (all other things being equal), as the price of a good or service decreases, the quantity demanded of that good or service increases. Here, computer prices have fallen due to lower production - costs. It's important to note the difference between demand (a shift of the entire demand curve) and quantity demanded (a movement along the demand curve). A change in price causes a movement along the demand curve, leading to a change in quantity demanded.
Answer:
The quantity demanded will increase.