When the demand and supply of grapes both increase at the same time, we can safely predict that the:
A)price of grapes will fall.
B)price of grapes will rise.
C)quantity of grapes exchanged will fall.
D)quantity of grapes exchanged will rise.

Question

When the demand and supply of grapes both increase at the same time, we can safely predict that the:
A)​price of grapes will fall.
B)​price of grapes will rise.
C)​quantity of grapes exchanged will fall.
D)​quantity of grapes exchanged will rise.

Quizplus · Accepted Answer

When both demand and supply increase at the same time, the quantity of grapes exchanged will increase but the price may remain relatively stable or even decrease due to the higher availability of grapes in the market. However, since the question only asks for the prediction related to quantity, choice D is the best answer.

When the Demand and Supply of Grapes Both Increase at the Same