In the market for oranges, we observe that the equilibrium price increased and the equilibrium quantity increased. What could have caused this change?
A) an increase in supply and a decrease in demand
B) an increase in demand
C) a decrease in supply
D) an increase in supply

Question

Quizplus · Accepted Answer

An increase in demand for oranges would lead to a higher equilibrium price and quantity, as more people are willing to buy oranges at higher prices, pushing both the price and quantity up.

In the Market for Oranges, We Observe That the Equilibrium