Question

1. The effect of a decrease in cost of
production of personal computers,
other things remaining constant, is
likely to be the best represented by
which of the following?
a downward shift in the demand
curve
O
a upward shift in the demand curve
a leftward shift in the supply curve
a rightward shift in the supply curve​

Answer 1

Answer:

a rightward shift in the supply

Answer 2

Answer:

The Correct answer is Option A

Step-by-step explanation:

• An increase in demand for computers and an increase in the number of sellers of computers will decrease the number of computers bought.
• This is because the supply and demand have increased and the quantity demanded will also increase to achieve equilibrium.
• When there is equal increase in supply and demand that is the shift of demand to the right from DD to D1D1 Is equal to the shift of supply curve from SS to S1S1 is equal.
• There is no change in the equilibrium price of the commodity but the equilibrium quantity will increase.