Over the last few years demand for Fitbits have increased and yet their equilibrium price has fallen.Which of the following best explains this situation?

Question

Quizplus · Accepted Answer

The increase in demand typically leads to a higher equilibrium price. However, if the supply increases even more than the demand, it can lead to a situation where the equilibrium price falls. This is because the greater increase in supply, compared to the increase in demand, puts downward pressure on the price.

Over the Last Few Years Demand for Fitbits Have Increased