Suppose that in 2007, Ford sold 500,000 Mustangs at an average price of $18,800 per car; in 2008, 600,000 Mustangs were sold at an average price of $19,500 per car. These statements

Question

Quizplus · Accepted Answer

The increase in the quantity of Mustangs sold and the increase in the average price between 2007 and 2008 suggest an increase in demand. If demand had decreased, we would expect to see a decrease in the quantity sold, and if supply had increased, we would expect to see a decrease in price. The scenario does not suggest an exception to the law of demand, as the increase in price is consistent with an increase in demand.

Suppose That in 2007, Ford Sold 500,000 Mustangs at an Average