Question

Suppose a union successfully negotiates an increase in the wages of workers producing computer chips. This would lead to an increase in the supply of computers, causing the price of computers to rise . Because computers and computer software are complements, this change in price would cause the demand for computer software to ____. However, computers and typewriters are substitutes, so the change in the price of computers would ____ the demand for typewriters.

Answer 1

The answer is: 1.- Decrease, 2.- Increase.

Step-by-step explanation:

The increase in prices on computers would produce, on the one hand, a decrease in the purchase of computers, and instead there will be an increase in the demand for typewriters.

The answer is: 1.- Decrease, 2.- Increase.