Consider the market for roses, which is currently in equilibrium. However, Valentine's Day is coming up, and the rose is the most popular flower to gift to a significant other on this holiday. How will the market for roses change on Valentine's Day?
A) The equilibrium price and quantity will increase due to an increase in supply.
B) The equilibrium price and quantity will increase due to an increase in demand.
C) The quantity demanded will increase because the price increases.
D) The quantity supplied will decrease because the price decreases.

Question

Quizplus · Accepted Answer

On Valentine's Day, the demand for roses will increase due to their popularity as gifts. As a result, the equilibrium price and quantity will increase as buyers are willing to pay more for roses and suppliers are willing to sell more at the higher price. Therefore, option B is the correct answer.

Consider the Market for Roses, Which Is Currently in Equilibrium