Question

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

a- decrease in prices for computers and computer accessories.
an increase in prices for computers and computer accessories.
a decrease in prices for computers, but not computer accessories.
an increase in prices for computers, but not computer accessories.

Answer 1

B} an increase in prices for computers and computer accessories.

Answer 2

an increase in prices for computers and computer accessories

Step-by-step explanation:

An increase in income leads to increased demand for products and services. Consumers can afford to buy more products because their disposable income has increased. Should demand increase without a corresponding increase in supply, prices are likely to rise.

Computers and computer accessories are complementary products. These are goods that are used together. An increase in demand for one product results in increased demand for the other. Should consumers have more money to buy computers, the demand for computers will increase, and their prices will also increase.