23.9k views
5 votes
Question 1 (2 points)

Apple opens up distribution of iPads to customers in China
a
Demand?
Supply?
Increasing?
Decreasing?
C
d

User Emrah
by
4.4k points

2 Answers

4 votes

Final answer:

An increase in computer sales at lower prices is typically due to an increase in supply, as seen in a shifted supply curve on a supply and demand diagram. Similarly, in financial markets, an increase in the quantity of loans is likely due to a rise in the supply of loans.

Step-by-step explanation:

When considering the computer market, which has experienced increased sales volume at lower prices, the most likely explanation for this would be a shift in supply rather than demand. Specifically, a significant increase in supply could lead to lower prices and more units sold. This can happen when more competitors enter the market, when there are improvements in technology that decrease production costs, or when there is deregulation or reduction in trade barriers facilitating easier distribution. To visualize this, one would draw a supply and demand diagram where the supply curve shifts to the right, indicating an increase in supply.

In the context of the financial market, an increase in the quantity of loans made and received could result from either a rise in demand for loans (shift to the right of the demand curve) or a rise in supply of loans (shift to the right of the supply curve). In this case, since we are focusing on a scenario where more loans are being made at potentially lower interest rates, it is more likely due to a rise in loan supply.

User Kessy
by
5.0k points
2 votes
ooo i think i know this
User Gangelo
by
4.7k points