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- Subject
- Supply and Demandeconomics-mcqs › supply-and-demand
- Published
- 29 May 2019
- Last updated
- 28 May 2026
If the cost of computer chips, a key component in making personal computers, declines, what will be the effect on the market for personal computers?
Multiple choice question for Supply and Demand. Select an option, then review the explanation below.
Explanation
When the price of an input like computer chips decreases, it lowers production costs, enabling manufacturers to produce more at each price level. This causes the supply curve to shift rightward, resulting in an increase in the supply of personal computers rather than just a change in quantity supplied.
More Supply and Demand MCQs
Practice related questions from the same subject.
- 1.What is the typical shape of a demand curve?
- 2.What term describes a company earning profits beyond its normal profit level?
- 3.How does an increase in marginal cost affect output, and how does an increase in marginal revenue impact output?
- 4.Marginal revenue refers to the ________ resulting from producing an additional ________ of output.
- 5.What are firms generally assumed to do with their costs and profits?