Question

By assembling computers only after customers have paid them for, resulting in a lower finished goods inventory, Dell Computer Co. achieved:

a) Increased quality
b) A competitive advantage
c) Increased responsiveness
d) Increased innovation
e) None of the above

Answer 1

A fall in demand is most likely to explain the outcome of many more computers selling at much lower prices in the computer market.

Step-by-step explanation:

A fall in demand is most likely to explain the outcome of many more computers selling at much lower prices in the computer market. When there is a fall in demand, it means that consumers want to buy fewer computers at any given price level. This leads to an excess supply of computers in the market, which forces sellers to lower the prices in order to attract buyers.

A demand and supply diagram can help illustrate this. When the demand curve shifts to the left, indicating a fall in demand, and the supply curve remains unchanged, the new equilibrium price will be lower and the quantity of computers sold will increase.

Keywords: fall in demand, excess supply, lower prices, demand and supply diagram