In year 1 the average price of X is $10,and in year 2 the average price of X is $23.If consumers buy more units of X in year 2 than in year 1,it follows that
A) the law of supply does not hold for good X.
B) demand for good X could be higher in year 2 than in year 1.
C) supply of good X could be less in year 2 than in year 1.
D) good X buyers have received an increase in income between year 1 and year 2,and good X is a normal good.
E) b and d

Question

Quizplus · Accepted Answer

The increase in price from $10 to $23 alongside an increase in quantity purchased suggests that demand for good X has increased, possibly due to higher demand (option B) or an increase in income if X is a normal good (option D). These scenarios do not necessarily imply that the law of supply has been violated or that the supply of good X has decreased, making options B and D both plausible explanations.

In Year 1 the Average Price of X Is $10,and