Question

​[related to solved problem ​#4​] the demand for plumsplums is highest during summer and lowest during winter. yet plumplum prices are normally lower in summer than in winter. what must be happening to the supply of plumsplums​, from winter to​ summer, for the equilibrium price to​ fall? loading... click on the icon to experiment with inward and outward shifts in supply and demand. note the change in equilibrium price and quantity.

a. the supply​ increases, but less than the demand increases.

b. the supply for plumsplums decreases.

c. the supply does not change.

d. the supply increases more than the demand increases.

Answer 1

D. The supply increases more than demand increases.

If the supply increases more than demand, the price can go down even though both supply and demand are going up.