There is an increase in the quantity of gasoline exchanged in the market, but the price remains the same. What must have happened to supply and demand?There was an increase in demand and an increase in supply.There was a decrease in demand and an increase in supply.There was an increase in demand and a decrease in supply.There was a decrease in demand and a decrease in supply.
Question
There is an increase in the quantity of gasoline exchanged in the market, but the price remains the same. What must have happened to supply and demand?There was an increase in demand and an increase in supply.There was a decrease in demand and an increase in supply.There was an increase in demand and a decrease in supply.There was a decrease in demand and a decrease in supply.
Solution
There was an increase in demand and an increase in supply. This is because, for the price to remain the same, the increase in the quantity of gasoline exchanged in the market must be due to an increase in both supply and demand. If only one of these factors increased, it would likely result in a change in price.
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