Which of the following statements explains a decrease in the market equilibrium price for laptops? a

Marketing Jan 12, 2021

Which of the following statements explains a decrease in the market equilibrium price for laptops?

a. An increase in consumer disposable income when laptops are inferior goods.

b. A change in consumer tastes and preferences making cell phones more attractive.

c. Improved technology that makes it less expensive to produce laptops.

d. An expected increase in the price of laptops in the future.

Expert Solution

A change in consumer tastes and preferences making cell phones more attractive.

The change in consumer preference from laptops to cellphones would result in the demand of the former to decrease as it would lead to an increase in market supply of the said product. This scenario is in line with the economic principle stating that the market equilibrium price tends to decrease when the demand decrease and the supply increases.

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