A simultaneous increase in both the demand for tablets and the supply of tablets would imply that
A)both the value of tablets to consumers and the cost of producing tablets has increased.
B)both the value of tablets to consumers and the cost of producing tablets has decreased.
C)the value of tablets to consumers has decreased, and the cost of producing tablets has increased.
D)the value of tablets to consumers has increased, and the cost of producing tablets has decreased.

Question

Quizplus · Accepted Answer

An increase in demand suggests that consumers value tablets more highly, while an increase in supply suggests that the cost of producing tablets has decreased, making it easier or cheaper to produce more.

A Simultaneous Increase in Both the Demand for Tablets and the Supply