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

The correct answer is the option 1: increased demand and no change in supply.

Step-by-step explanation:

In the situation where the demand increases and there is no change in the supply, that involves no changes in the technolgy field that helps the production process to help the competition, would have repercurssions in the price of the product. In that situation, where there is not competition, the supply does no change therefore the impact of the increse of the demand would have repercussions in the price of the product.

Answer 2

The price of designer jeans would likely increase if its demand increases and there is no changes in supply.