If we observe a decrease in the price of a good and an increase in the amount of the good bought and sold, this could be explained by
A) an increase in the supply of the good.
B) an increase in the demand for the good.
C) a decrease in the demand for the good.
D) a decrease in the supply of the good.

Question

Quizplus · Accepted Answer

An increase in supply would lead to a lower price and a higher quantity sold, as suppliers are willing to sell more at each price level, shifting the supply curve to the right.

If We Observe a Decrease in the Price of a Good