t the ones highlighted in red are already marked incorrect QUESTION 28 Consider

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the ones highlighted in red are already marked incorrect

QUESTION 28 Consider the market of personal computers. Suppose there is an increase in the cost of electricity to both buyers and sellers. What effect could it have? 4. Equilibrium price decreases. 1. 2 5 7. Equilibrium quantity increases. 8 10. Equilibrium remain unchanged 5 points QUESTION 29 1. Consider the market of personal computers, which of the following is not a supply shifter? 4. Number of sellers in this market 5 7. Popularity of smart phones and laptops 10. Price of computer hara drives

Explanation / Answer

23. It shifts when price changes is the incorrect statement about the demand curve

explanation ;

when price changes there is a movement along the demand curve not a shift So the correct ans is a) It shifts when price changes.

25. The least likely to be true is ;

If all the gyms are free for everyone , there would be a decrease in the demand for hospital beds.

Explanation :

When gym are free for everyone, it leads more people to join gym which makes them healthy and is leads to hospital beds demand reduce because now less people go to hospital.

correct ans is c).

28. If the electricity cost increases for both buyers and suppier. The equilibrium price will decrease.

explaination :

As computers and elecricity are complementary goods so as the price of electricity increases, the demand for personal computer will fall, it leads to leftward shift in the demand curve but no change in supply of computers because electricity is not related to the production of computers.

So as demand shift leftward, it leads to fall in both equilibrium price and quantity.

So correct ans is a) equilibrium price will decrease.

29. the popularity of smartphone and laptops is not a supply shifter of the personal computers.

Explaination :

The popularity of smartphones and laptops will not shift the supply curve but it will shift the demand curve of computer.

While production plant manager salary is the cost for the computer production so it is a suppy shifter.

correct ans is b) popularity of smartphones and laptops.

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