Posted by JESSICA on .
in the simple economics of a competitive market price increase under which condition:
a)demand is constant.supply decline.
b)demand decreases.supply increases.
c)demand ans supply rise concomitantly.
Which do you think is the best answer?
I think the answer is b am I corerect?
Draw simple supply and demand curves. Then shift the curve(s) as suggested in each answer. What happens to price? (Hint: answer b is incorrect. A decrease in demand would lower price and an increase in supply would also lower price)