Question

Think about the demand for three game​ consoles: XBox​ One, PlayStation​ 4, and Wii U. What is the effect of the following events on the demand for Xbox One games and the quantity of Xbox One games​ demanded, other things remaining the​ same? The events are A. The prices of a PS 4 and a Wii Upper U fall The prices of a PS4 and a Wii U fall. B. Consumers' incomes increase Consumers' incomes increase. C. The number of people writing and producing XBox One games increases D. The number of people writing and producing XBox One games increases.

Answer 1

Answer:

A. The prices of a PS 4 and a Wii U fall. DEMAND FOR XBOX ONE GAMES DECREASES, since PS 4 and Wii U are substitute products for XBOX, as their price falls, the demand for XBOX ONE games decreases.

B. Consumers' incomes increase. DEMAND FOR XBOX ONE GAMES INCREASES, as the consumers' income increases, the total demand for XBOX ONE games increases.

C. The number of people writing and producing XBox One games increases. QUANTITY DEMANDED FOR XBOX ONE GAMES INCREASES, since more XBOX ONE games are being supplied, the price should decrease, resulting in an increase in the quantity demanded.

Answer 2

Answer:

The demand for Xbox One games falls

The demand for Xbox One games increases

The quantity demanded on Xbox One increases

Explanation:

Xbox one , PlayStation​ 4, and Wii U can be referred to as substitute goods.

Substitute goods are goods which can be used or consumed in place of one other. If the price of PlayStation​ 4, and Wii U falls, consumers would increase the quantity demanded of this games and reduce demand for Xbox one because Xbox One is now more expensive relative to the other games.

If consumers income increase, they would have a higher disposable income and so demand would increase.

If the number of people writing and producing XBox One games increases, supply of Xbox one games would exceed demand. This would lead to a fall in price and an increase in the quantity demanded.

I hope my answer helps you