In the mid-1990s,The Wall Street Journal reported a renewed interest in eating caviar.At the same time,the supply of Russian caviar was shrinking following the collapse of Soviet Communism.As a result of these events,one would expect that the price of caviar ________ while the quantity sold _______.

Question

Quizplus · Accepted Answer

The increased interest in eating caviar would increase demand, while the shrinking supply would decrease supply. Both factors would lead to an increase in price, but the effect on quantity sold is indeterminate without knowing the relative magnitudes of the shifts in demand and supply.

In the Mid-1990s,The Wall Street Journal Reported a Renewed Interest