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An increase in the demand for computers and an increase in the number of sellers of computers will
  • a)
    increase the number of computers bought
  • b)
    decrease the price but increase the number of computers bought
  • c)
    increase the price of a computer
  • d)
    increase the price and the number of computers bought
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
An increase in the demand for computers and an increase in the number ...
Correct Answer :- d
Explanation : An increase in demand for computers and increase in 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.
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An increase in the demand for computers and an increase in the number ...
Effect of Increase in Demand and Number of Sellers of Computers

Increase in Demand for Computers

When there is an increase in the demand for computers, it leads to:

1. Increase in the price of computers: As the demand for computers increases, the price of computers is likely to increase. This is because the demand for computers exceeds the supply of computers, and sellers can charge a higher price.

2. Increase in the quantity of computers bought: As the demand for computers increases, it leads to an increase in the quantity of computers bought. This is because buyers are willing to purchase more computers at a higher price.

Increase in the Number of Sellers of Computers

When there is an increase in the number of sellers of computers, it leads to:

1. Decrease in the price of computers: As the number of sellers of computers increases, the competition among the sellers increases. This leads to a decrease in the price of computers as sellers try to attract more buyers by offering lower prices.

2. Increase in the quantity of computers bought: As the price of computers decreases, it leads to an increase in the quantity of computers bought. This is because buyers are willing to purchase more computers at a lower price.

Combining the Effects of Increase in Demand and Number of Sellers of Computers

When there is an increase in both the demand for computers and the number of sellers of computers, it leads to:

1. Increase in the quantity of computers bought: As the demand for computers increases and the number of sellers of computers increases, it leads to an increase in the quantity of computers bought. This is because buyers are willing to purchase more computers at a lower price.

2. Decrease in the price of computers: As the number of sellers of computers increases, it leads to a decrease in the price of computers. This effect is more significant than the effect of an increase in demand, which leads to an increase in the price of computers.

Therefore, the answer is b) decrease the price but increase the number of computers bought.
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Community Answer
An increase in the demand for computers and an increase in the number ...
Answer b is correct because when price is decrease people increase there demand so quantity demanded increase to bought computers more
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An increase in the demand for computers and an increase in the number of sellers of computers willa)increase the number of computers boughtb)decrease the price but increase the number of computers boughtc)increase the price of a computerd)increase the price and the number of computers boughtCorrect answer is option 'D'. Can you explain this answer?
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An increase in the demand for computers and an increase in the number of sellers of computers willa)increase the number of computers boughtb)decrease the price but increase the number of computers boughtc)increase the price of a computerd)increase the price and the number of computers boughtCorrect answer is option 'D'. Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about An increase in the demand for computers and an increase in the number of sellers of computers willa)increase the number of computers boughtb)decrease the price but increase the number of computers boughtc)increase the price of a computerd)increase the price and the number of computers boughtCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for An increase in the demand for computers and an increase in the number of sellers of computers willa)increase the number of computers boughtb)decrease the price but increase the number of computers boughtc)increase the price of a computerd)increase the price and the number of computers boughtCorrect answer is option 'D'. Can you explain this answer?.
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