Assuming that desktop computers are normal goods, which of the following will NOT increase demand for desktop computers?
A)an increase in the incomes of computer users
B)cool new computer games that can only be played on desktop computers
C)a very large computer company going out of business
D)the price of notebook computers increasing

Question

Quizplus · Accepted Answer

The other three choices all increase the purchasing power or incentive for consumers to buy desktop computers. An increase in income allows for more discretionary spending on luxury items like desktop computers, cool new computer games create a specific demand for desktop computers, and an increase in the price of notebook computers makes desktop computers relatively cheaper. However, the bankruptcies of a large computer company may decrease demand since it can create uncertainty and a lack of trust in the market.

Assuming That Desktop Computers Are Normal Goods, Which of the Following