"As the price of personal computers contin - 11559

Solution Posted by
yousafbhutta

yousafbhutta

Rating : (28)C
Solution Detail
Price: $1.00
  • From: , Microeconomics
  • Posted on: Sun 24 Jun, 2012
  • Request id: None
  • Purchased: 0 time(s)
  • Average Rating: No rating
Request Description

"As the price of personal computers continues to fall, demand increases." This headline is inaccurate because

  •  a change in the price of personal computers shifts the demand curve.
  •  a change in the price of personal computers shifts the supply curve.
  •  the statement is backwards: increased demand leads to lower prices.
  •  falling prices for personal computers increases quantity demanded, not demand.
Solution Description

 

"As the price of personal computers continues to fall, demand increases." This headline is inaccurate because