Which one of the following could account for an increase in the market-clearing price of the iPad? A) a decrease in demand for iPads

Marketing Jan 11, 2021

Which one of the following could account for an increase in the market-clearing price of the iPad?

A) a decrease in demand for iPads.

B) an increase in the supply of iPads.

C) an increase in supply along with a decrease in demand.

D) an increase in demand along with a decrease in supply.

Expert Solution

The answer is D).

In general, the equilibrium price increases when (1) there is an increase in demand; (2) there is a drop in supply, or (3) both. Hence, the correct answer is D).

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