We observe a fall in the price of service A and an increase in the quantity of service A bought and sold. Which is a likely explanation?
A) The law of supply is violated.
B) The demand for A decreased.
C) The demand for A increased.
D) The supply of A increased.
E) The supply of A decreased.

Question

Quizplus · Accepted Answer

An increase in supply typically leads to a decrease in price and an increase in quantity sold, which matches the observed scenario.

We Observe a Fall in the Price of Service a and an Increase