In general, an increase in price could be caused by either:
A)an increase in demand or a decrease in supply.
B)an increase in demand or an increase in supply.
C)a decrease in demand or an increase in supply.
D)a decrease in demand or a decrease in supply.

Question

In general, an increase in price could be caused by either:
A)​an increase in demand or a decrease in supply.
B)​an increase in demand or an increase in supply.
C)​a decrease in demand or an increase in supply.
D)​a decrease in demand or a decrease in supply.

Quizplus · Accepted Answer

An increase in price is usually caused by an increase in demand or a decrease in supply. When demand increases, the market price goes up because the available supply is not enough to satisfy the demand. Alternatively, a decrease in supply can cause an increase in price as there are fewer goods available for purchase.

In General, an Increase in Price Could Be Caused by Either