A situation in which the demand for a product is decreasing while the price is simultaneously increasing can be explained by
A)A decrease in supply
B)An increase in supply
C)Unchanged supply
D)All of the above
E)None of the above

Question

Quizplus · Accepted Answer

If the demand for a product is decreasing while the price is increasing, it means that consumers are no longer willing to pay the higher price for the same quantity of the product. This could happen if there is a decrease in supply, leading to a shortage of the product and therefore higher prices. As a result, demand decreases as consumers switch to substitute products or reduce their overall consumption.

A Situation in Which the Demand for a Product Is