Microeconomics: Principles, Applications, and Tools (8th Edition)

by O'Sullivan, Arthur; Sheffrin, Steven; Perez, Stephen

Published by Prentice Hall

ISBN 10: 0-13294-886-9

ISBN 13: 978-0-13294-886-9

Chapter 4 - Demand, Supply, and Market Equilibrium - Exercises - 4.6 Predicting and Explaining Market Changes - Page 95: 6.11

Answer

The price dropped because of a increase in supply.

Work Step by Step

Because the price decreased while the quantity increased, we know the cause is a change in supply.

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