When the demand for grapes decreases and the supply of grapes increases 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 decreases and the supply of grapes increases 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 the demand for grapes decreases and the supply of grapes increases, there is an excess supply of grapes in the market. To get rid of this surplus, producers will lower the price of grapes, which will result in an increase in the quantity of grapes demanded. Therefore, the price of grapes will fall.

When the Demand for Grapes Decreases and the Supply of Grapes