The market for lemonade is in equilibrium and the price of lemons rises.In the lemonade market _____ will _____,_____ the price and _____ the quantity.
A)demand;decrease;decreasing;decreasing
B)demand;decrease;increasing;decreasing
C)supply;increase;decreasing;increasing
D)supply;decrease;increasing;decreasing

Question

Quizplus · Accepted Answer

When the price of lemons rises, it becomes more expensive for producers to make lemonade, leading to a decrease in supply. This decrease in supply, with demand remaining constant, results in an increase in the price of lemonade and a decrease in the quantity sold.

The Market for Lemonade Is in Equilibrium and the Price