Based on this graph what has happened to the market price and quantity of lemons after the shift in demand? A B C D

Social Studies

1 answer:

svlad2 [7]3 years ago

5 0

The correct answer is A. Price increased and quantity increased

Explanation:

The graph shows the relationship between price (vertical axis) and quantity of lemons (horizontal axis) in terms of supply (quantity produced) and demand (quantity consumers can buy).

In the case of demand, the first line (demand 1) shows the maximum price was $4.5 and this was related to 100 lemons, while the lower price was below $1 for 500 lemons. On the other hand, in demand 2, the maximum price is above $5, which shows there was an increase in price; also, the maximum quantity demanded was almost 600 units for a price of $2, while in the first demand the maximum quantity demanded was 500 lemons. According to this both price and quantity increased.---

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