What Factors Increase Demand for Desk Lamps?
Which of the following will increase demand for desk lamps?
A. If desks are a complementary good for desk lamps, the price of desks decreases.
B. If desks are a complementary good for desk lamps, the price of desks increases.
C. If income increases and desk lamps are normal goods.
D. If income increases and desk lamps are inferior goods.
E. If floor lamps are substitute goods for desk lamps, the price of floor lamps increases.
Final answer: An increase in the demand for desk lamps can be caused by a decrease in the price of a complementary good like desks, an increase in income if desk lamps are normal goods, or an increase in the price of substitute goods like floor lamps.
Explanation:
To understand which factors increase the demand for desk lamps, let's explore the given options:
A. If desks are a complementary good for desk lamps, the price of desks decreases: Yes, this will increase the demand for desk lamps. When the price of a complementary good like desks decreases, people are more likely to purchase them, and hence, also the complementary product - desk lamps.B. If desks are a complementary good for desk lamps, the price of desks increases: No, this will not increase demand for desk lamps. When the price of a complement increases, people will buy less of it and therefore, less of the related good.
C. If income increases and desk lamps are normal goods: Yes, if desk lamps are considered normal goods, an increase in income would typically increase demand because people will have more money to spend on these products.
D. If income increases and desk lamps are inferior goods: No, if desk lamps are considered inferior goods, an increase in income would typically lead to a decrease in demand, as people will use their higher income to purchase more premium products instead.
E. If floor lamps are substitute goods for desk lamps, the price of floor lamps increases: Yes, when the price of a substitute good like floor lamps increases, people might switch to buying more of the lower-priced substitute - desk lamps, which would increase demand for desk lamps.
Desk lamps are essential for providing lighting in workspaces, reading areas, and bedrooms. Understanding the factors that increase demand for desk lamps can help businesses in marketing and pricing strategies. By analyzing the impact of complementary goods, income levels, and substitute goods, companies can optimize their sales and revenue.
When desks are a complementary good for desk lamps, a decrease in desk prices can lead to higher demand for desk lamps. Consumers are more likely to purchase desk lamps when the price of desks is lower, as they tend to use both products together. On the other hand, an increase in desk prices may reduce the demand for desk lamps, as consumers may opt for alternative lighting solutions.
If desk lamps are considered normal goods and income levels rise, the increased purchasing power can boost demand for desk lamps. Consumers are more willing to invest in quality lighting products when they have higher disposable income. However, if desk lamps are inferior goods, an increase in income may not necessarily drive up demand, as consumers may shift towards more upscale options.
Substitute goods like floor lamps can also influence the demand for desk lamps. When the price of floor lamps increases, consumers may switch to purchasing more desk lamps as a lower-cost alternative. This shift in consumer behavior can result in higher demand for desk lamps in the market.