Desktop computers have fallen out of favor because consumers prefer portability. At the same time, the components needed to produce a desktop computer have decreased in price. Given these changes, what will happen to the equilibrium price for desktop computers? Choose one: A. The equilibrium price will fall because of a decrease in demand and increase in supply. B. The equilibrium price will rise because of the increase in demand and the decrease in supply. C. The equilibrium price will fall because of the decrease in demand and a decrease in supply. D. We do not have enough information to answer the question given the decrease in both demand and supply.

Question

Stanley

Computers & Technology

17 October, 18:28

Desktop computers have fallen out of favor because consumers prefer portability. At the same time, the components needed to produce a desktop computer have decreased in price. Given these changes, what will happen to the equilibrium price for desktop computers? Choose one: A. The equilibrium price will fall because of a decrease in demand and increase in supply. B. The equilibrium price will rise because of the increase in demand and the decrease in supply. C. The equilibrium price will fall because of the decrease in demand and a decrease in supply. D. We do not have enough information to answer the question given the decrease in both demand and supply.

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Answers (1)

Know the Answer?

Natalee Wong · Answer 1

Option A is correct.

Explanation:

Desktop computers were down because customers demand portability. Simultaneously, the resources required to create a desktop PC have been lowering in price. The equilibrium price for desktop computers due to reduced demand and increased supply.

That's why, the following option is true about the statement.