An increase in the demand for ski trips brings a _ of ski trips at the original price, and the price of a ski trip will _

Economics Jan 22, 2021

An increase in the demand for ski trips brings a _____ of ski trips at the original price, and the price of a ski trip will _____."

a. surplus, fall

b. shortage, fall

c. shortage, rise

d. surplus, rise

Expert Solution

The correct answer is c. shortage, rise,

This is because the demand level is matched with the market supply level to keep stability in the economy. An increase in demand means that the requirement for ski trips boost up and the supply is kept at the constant level. It creates the shortage of ski trips in the market. In the short run, the producers are unable to suddenly increase the manufacturing of ski trips. So, the price level of ski trips would rise.

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