Question

The Hewlett-Packard Company (HP) sells its computer printers in the United States and abroad. What will happen to the equilibrium price and the equilibrium quantity in this country's market for the HP printers in response to a decrease in the price of this product abroad?A. The answer cannot be ascertained without additionalinformation.B. The price will increase and the quantity demanded will increase.C. The price will increase and the quantity demanded will decrease.D. The price will decrease and the quantity will increase.E. The price will decrease and the quantity demanded will decrease

Answer 1

Answer: A. The answer cannot be ascertained without additional information.

Step-by-step explanation:

There are different reasons that could explain why the price of the HP Printers would reduce abroad but not in this country. HP could be producing computers abroad for instance and this country charges import duties when HP imports but import duties are not charged abroad.

There also could be a difference in currency value and standard of living influencing how HP prices its goods abroad as well as other factors. More details would therefore be needed to answer this question.