This month, Fritter Firm finds that it has been able to sell 200 fritters at a price of $1 per fritter. Last month, the firm was able to sell only 150 fritters at $1 per fritter. This change is most likely due to an increase in supply.

Question

Quizplus · Accepted Answer

The change is more likely due to an increase in demand, as the firm sold more fritters at the same price. An increase in supply, without a change in demand, would typically lead to a lower price per fritter.

This Month, Fritter Firm Finds That It Has Been Able