How would the following events affect the market demand for laser prin

How would the following events affect the market demand for laser printers?
a) A recession in the economy leading to a fall in income levels
b) A five-fold increase in the price of printing paper

What will be an ideal response?

ANSWER

a) A recession in the economy that causes a fall in income levels will cause a fall in the overall demand in the economy including a fall in the demand for laser printers. This will be represented by a left shift in the demand curve for laser printers.
b) Printing paper and laser printers are complements. Therefore, a fivefold increase in the price of printing paper will make printing more expensive and subsequently reduce the demand for laser printers. This will be represented by a left shift in the market demand for laser printers.