In the market for air conditioners, you observe that the price
went up and the quantity went down. Which of the following could
POSSIBLY have caused these changes? Select all that apply.
Homework Answers
If the demand in the market increase that will increase both the quantity and price of the goods in the market, and if the supply increased by less than the increase in the demand then the quantity and price both will increase so option D is wrong.
If demand decreased and supply decreased and decrease in the supply is more than decrease in the demand then price will rise and quantity will fall , so option C is correct,
If the demand increased that will increase the price and quantity both and if the decrease in the supply is more than the increase in the demand then the price will rise and quantity will fall, so B is correct.
If both demand and supply increased then price will fall so this cannot be right.
Answer is "B" and "C".
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