The figure given below shows the demand and supply curves in the market for coffee. S 1 and D 1 are the original demand and supply curves.Figure 3.5

-A market survey conducted by an electronics manufacturer reported a year on year growth in the sale of television sets, along with an increase in the selling price. Which of the following could be a likely cause for this situation?
A)A decrease in supply
B)An increase in demand
C)A decrease in demand
D)An exception to the law of demand
E)An increase in supply

Question

The figure given below shows the demand and supply curves in the market for coffee. S 1 and D 1 are the original demand and supply curves.Figure 3.5
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-A market survey conducted by an electronics manufacturer reported a year on year growth in the sale of television sets, along with an increase in the selling price. Which of the following could be a likely cause for this situation?
A)A decrease in supply 
B)An increase in demand 
C)A decrease in demand 
D)An exception to the law of demand 
E)An increase in supply

Quizplus · Accepted Answer

If there is an increase in the demand for television sets, along with an increase in the selling price, it is likely due to an increase in demand. This could be caused by various factors, such as an increase in disposable income, a change in consumer preferences, or a shift in demographics. An increase in supply or an exception to the law of demand (which states that as price increases, quantity demanded decreases) would not result in an increase in selling price. A decrease in supply or demand would result in a decrease in the quantity of television sets being sold, along with an increase in selling price.

The Figure Given Below Shows the Demand and Supply Curves