The Impact of Consumer Income on Computer Prices

How does consumers having more money to purchase computers affect computer prices?

a- decrease in prices for computers and computer accessories.

b- an increase in prices for computers and computer accessories.

c- a decrease in prices for computers, but not computer accessories.

d- an increase in prices for computers, but not computer accessories.

Answer: b- an increase in prices for computers and computer accessories

When consumers have more money to purchase computers, it is likely to result in an increase in prices for both computers and computer accessories. This is because an increase in consumer income leads to increased demand for products and services.

Consumers who have more disposable income can afford to buy more products, leading to a higher demand. If the demand goes up without a corresponding increase in supply, prices are expected to rise.

Computers and computer accessories are considered complementary products, as they are often used together. Therefore, an increase in demand for computers will also lead to an increase in demand for computer accessories.

Overall, an increase in consumer income that allows them to purchase more computers will result in higher prices for both computers and computer accessories due to increased demand.