Home › AP Macroeconomics › Economics › Demand and Supply › As the price of tablet computers has fallen, mor…
As the price of tablet computers has fallen, more shoppers buy tablets instead of laptops, since the two serve as substitutes. What does the falling price of tablets do to the demand curve for laptops?
AIt shifts the laptop demand curve to the right
BIt produces a movement along the laptop demand curve
CIt shifts the laptop demand curve to the left
DIt shifts the laptop supply curve to the left
Answer & Solution
Correct answer: C. It shifts the laptop demand curve to the left
1. Tablets and laptops are substitutes, so the price of one affects demand for the other.
2. A lower tablet price is a change in a related good's price, which shifts the laptop demand curve rather than moving along it.
3. Fewer buyers want laptops at every price once tablets become cheaper, so the laptop demand curve shifts left.
4. Options B and D describe the wrong mechanism: B ignores that this is a shift, and D misidentifies which curve moves.
_Source: OpenStax Principles of Macroeconomics for AP Courses (CC BY 4.0), Ch 3 "Demand and Supply", section 3.2 | Shifts in Demand and Supply for Goods and Services_
Related questions
A city's movie theaters reach a free-market equilibrium of $8 per ticket with 1,800 peopleA new back-pain drug would sell at a free-market equilibrium price of $600 per month, withWhat is the loss in total surplus that occurs when an economy produces at an inefficient qA seller would have been willing to accept less for a good than the market equilibrium priA consumer would have been willing to pay more for a good than the market equilibrium pricIf a government sets a price floor below the market equilibrium price, what is the expecteWhat hourly rate was the federal minimum wage set at, at the end of 2014?Rising incomes in a city shift the demand curve for rental housing to the right, moving th