Question

In which of the following scenarios would we definitely know that price will increase but we'd be unable to determine how quantity changes?

A. D↑ and S↓
B. D↑ and S no change
C. D↓ and S↓
D. D↓ and S↑
E. D↑ and S↑

Answer 1

In the scenario where demand increases and supply remains unchanged, it is clear that the price will increase. However, we would be unable to determine how the quantity changes.

Step-by-step explanation:

In the scenario where demand increases (D↑) and supply remains unchanged (S no change), it is clear that the price will increase. However, we would be unable to determine how the quantity changes.