Which one of the following could account for an increase in the market clearing price of portable power banks?
A) a decrease in demand for portable power banks
B) an increase in supply of portable power banks
C) an increase in supply along with a decrease in demand
D) an increase in demand along with a decrease in supply

Question

Quizplus · Accepted Answer

An increase in demand along with a decrease in supply would result in an increase in the market clearing price of portable power banks. This is because there is more demand for portable power banks while the supply is limited, leading to higher prices to match the increased demand. A decrease in demand or an increase in supply would have the opposite effect and lead to lower prices. An increase in supply along with a decrease in demand would result in prices that could go either way, depending on which factor has a greater impact.

Which One of the Following Could Account for an Increase