Question

An unusually hot summer has shifted the demand curve for lemonade to the right. at the new equilibrium, you can expect _____. an increase in quantity supplied and an increase in price a decrease in quantity supplied and a decrease in price a decrease in quantity supplied and an increase in price an increase in quantity supplied and a decrease in price

Answer 1

The correct answer should be an increase in quantity supplied and an increase in price. Since people want it, it will be provided more. It's supply and demand, the more you have a need for something the more will be produced, and vice versa. Of course, the owners will use the situation to earn a lot because people will want to buy it so the price will probably go up too.