Nick is delighted to see that the price of his favorite food, black olives, has fallen. Which of the following could be responsible?
A)an increase in the demand for black olives
B)a decrease in the supply of black olives
C)a simultaneous increase in demand and decrease in supply of black olives
D)a simultaneous decrease in demand and increase in supply of black olives

Question

Nick is delighted to see that the price of his favorite food, black olives, has fallen. Which of the following could be responsible?
A)​an increase in the demand for black olives
B)​a decrease in the supply of black olives
C)​a simultaneous increase in demand and decrease in supply of black olives
D)​a simultaneous decrease in demand and increase in supply of black olives

Quizplus · Accepted Answer

A decrease in the price of black olives could be caused by a decrease in demand or an increase in supply. Option D, which suggests both a decrease in demand and an increase in supply, would most effectively lower prices, as the increased supply would exceed demand, leading to lower prices.

Nick Is Delighted to See That the Price of His