Question

Consumers having more money to purchase computers will likely result in an increase in prices for computers and computer accessories?
True or false

Answer 1

The answer is true.

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Answer 2

The correct answer is true.

It is true that consumers having more money to purchase computers will likely result in an increase in prices for computers and computer accessories.

This statement is correct because, in a free-market economy, prices are established by the demand and supply, with minimum intervention of the federal government. So in this case, the more people buy computers and accessories, the more prices will arise. On the contrary, if fewer people are interested in buying this thing, the prices will be reduced.