Suppose that the demand curve for desktop computers shifts rightward and at the same time the supply curve shifts leftward. Which of the following could have causedthese shifts?Desktopcomputers are a normal good and incomes increased, while the laborcosts of producing personal computers increased.Desk…
Desktop computers are a normal good and incomes increased, whilethe labor costs of producing personal computers increased. The desktop being a normal good means that when income increasepeople demand more of the good which is the reason for therightward shift of the demand curve. The labor cost of…
producingthe computers increased so it is not as profitable for thesuppliers to produce and supply this good so the supply woulddecrease which is the reason for the leftward shift to the supplycurve.
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