When the demand for grapes increases and the supply of grapes decreases at the same time, we can 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 for grapes increases and the supply of grapes decreases at the same time, we can 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 demand for grapes increases and supply decreases at the same time, it creates a market shortage. This means that there are more buyers than there are available grapes, leading to an increase in the equilibrium price. Therefore, the price of grapes will rise.

When the Demand for Grapes Increases and the Supply of Grapes