Question

Which of the following most accurately explains why the quantity of word processing software exchanged increases from one year to the next? O An increasing number of people use word processing software on their various devices, which causes a rightward shift of the demand curve. O A decreasing number of people use word processing software on their various devices, which causes a leftward shift of the demand curve. O An increasing number of people use word processing software on their various devices, which causes a rightward shift of the supply curve. A decreasing number of people use word processing software on their various devices, which causes a leftward shift of the supply curve.

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Answer #1

An increasing number of people use word processing software on their devices. This leads to increased supply and thus the shifting of supply curve towards right.

Increase in Supply New Equilibriurm is determined at E Equilibrium Price falls from OP to OP, Equilibrium Quantity 0 rises from OQ to OQ 01 a Q Quantity demanded and supplied (in units) Fig. 11.8

Thus equilibrium quantity increases and equilibrium price decreases, making even more people to further exchange this software.

Correct Ans - C

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