Question

The price (P) of designer jeans is affected by the supply (S) and the demand (D).

Which of these can cause an increase in the price of designer jeans?

Increased demand and no change in supply

Decreased demand and increased supply

Increased supply alone

Decreased demand alone

Answer 1

Increased demand and no change in supply can RESULT in an increased price, but they don't 'cause' it. The CAUSE of the increase in price is the seller's decision to raise it, typically out of motives of get it when you can, charge what the traffic will bear, jack it up and fleece them when possible.

Answer 2

Increased demand and no change in supply

Step-by-step explanation:

The cost of goods and services is affected by two things:

Demand

Supply

According to the principles of economics, the demand pushes the supply of the goods. However, there is a time where the demand far exceeds the supply. In this case, the price of the goods rise sharply to compensate for the short supply of the material which will come at higher price. This results in inflation.