Factory incentives on cell phones have encouraged consumers to upgrade their phones. How does this affect the market for bluetooth headsets?
a. The quantity of bluetooth headsets demanded increases.
b. The quantity of bluetooth headsets demanded decreases.
c. The demand for bluetooth headsets increases.
d. The demand for bluetooth headsets decreases.

Question

12-09-2018
Business

contestada

Factory incentives on cell phones have encouraged consumers to upgrade their phones. How does this affect the market for bluetooth headsets?
a. The quantity of bluetooth headsets demanded increases.
b. The quantity of bluetooth headsets demanded decreases.
c. The demand for bluetooth headsets increases.
d. The demand for bluetooth headsets decreases.

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Answer: c). The demand for Bluetooth headsets increases.

Explanation: Factory incentives on cell phones have encouraged consumers to upgrade their phones. The up-gradation of cell phones will encourage consumers to buy more Bluetooth headsets as they are now supportable with the cell phones. This will shift the demand for Bluetooth headsets to the right. As a result the price and quantity of Bluetooth headsets will increase. Thus, c is the correct option, demand for Bluetooth headsets increases.