Question

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.

Answer 1

Which do you think is the best answer?

Answer 2

I think the answer is b am I corerect?

Answer 3

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)