Suppose caviar sales soars at the same time price increases. What would lead to both a higher quantity sold and higher price of caviar?
A) A shift in demand to the right and a larger shift in supply to the right.
B) A shift in demand to the left and a smaller shift in supply to the left.
C) A shift in demand to the right and a shift in supply to the left.
D) A shift in demand to the left and a smaller shift in supply to the right.

Question

Quizplus · Accepted Answer

A shift in demand to the right (increase in demand) and a shift in supply to the left (decrease in supply) would lead to both a higher quantity sold and a higher price, as increased demand raises both price and quantity, while decreased supply raises price further.

Suppose Caviar Sales Soars at the Same Time Price Increases