When the relative price of computers falls,consumption possibilities ________ because ________.
A) will not change; people don't need to buy multiple computers at one time
B) will not change; changes in technology will always lower computer prices
C) will change; consumers respond to lower relative prices by buying larger quantities of the good
D) will change; greater quantities of computers will be produced
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

According to the law of demand, as the price of a good falls, the quantity demanded of the good increases. Therefore, when the relative price of computers falls, consumers respond by buying more computers, which increases their consumption possibilities.

When the Relative Price of Computers Falls,consumption Possibilities ________ Because