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In the market for cable television, fewer people are subscribing to cable while the cost of providing cable television has increased.

a) Shift in demand with an increase in supply
b) Shift in demand with a decrease in supply
c) Shift in supply with an increase in demand
d) Shift in supply with a decrease in demand

1 Answer

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Final answer:

The computer market in recent years has seen many more computers sell at much lower prices. The most likely explanation for this outcome is a fall in demand. Option A

Step-by-step explanation:

The correct answer is b) A fall in demand. When more computers are selling at much lower prices, it indicates a decrease in the demand for computers. This means that fewer people are willing to buy computers at the current prices.

A fall in demand would result in a leftward (or upward) shift in the demand curve. This shift would lead to a decrease in both the quantity demanded and the equilibrium price of computers in the market.

To visually represent this on a demand and supply diagram, you would shift the demand curve to the left, resulting in a new equilibrium point with a lower price and quantity demanded. Option A

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