Suppose you are told that last year the price of peanuts fell and the quantity sold...
Suppose you are told that last year the price of peanuts fell and the quantity sold increased. Using supply and demand analysis explain how these changes could have occurred.
Homework Answers
In simple words, it is due to the LAW OF DEMAND
According to the law of demand, in cetris paribus price is inversely related to the quantity demanded and vice versa
Or if price increases then quantity demand will decreases and vice versa
Here also in the question, since the peanuts price falls which means quantity demanded or sold increased
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