Final answer:
Dell and Apple computers are seen as substitutes in the market. A decrease in the price of Dell may lead to a substitution effect, where consumers choose Dell over Apple, and an income effect where consumers' purchasing power increases, potentially shifting demand away from Apple.
Step-by-step explanation:
Consumers may view Dell and Apple computers as substitutes because both serve similar functions and cater to personal computing needs. If the price of a Dell computer decreases, according to the law of demand, we would expect an increase in the quantity demanded for Dell computers.
This price decrease may result in a substitution effect, where consumers opt for the more affordable Dell computers over the relatively more expensive Apple computers.
Additionally, a lower price for Dell computers could lead to an income effect, effectively increasing the purchasing power of consumers as they can now buy more or save the difference. This could potentially decrease the demand for Apple computers, leading to a leftward shift in the demand curve for Apple laptops, as consumers allocate their budget towards the cheaper substitute.
However, brand loyalty, preferences, and perceived quality differences might also play a role in how much demand shifts.