there are simultaneous changes in the demand for and supply of global - positioning - system (gps) devices…

there are simultaneous changes in the demand for and supply of global - positioning - system (gps) devices, with the consequences being an unambiguous increase in the market clearing price of these devices but no change in the equilibrium quantity. what changes in the demand for and supply of gps devices could have generated these outcomes? a. demand increases and supply decreases. b. demand increases and supply increases. c. demand decreases and supply increases. d. demand decreases and supply decreases.

there are simultaneous changes in the demand for and supply of global - positioning - system (gps) devices, with the consequences being an unambiguous increase in the market clearing price of these devices but no change in the equilibrium quantity. what changes in the demand for and supply of gps devices could have generated these outcomes? a. demand increases and supply decreases. b. demand increases and supply increases. c. demand decreases and supply increases. d. demand decreases and supply decreases.

Answer

Brief Explanations:

In economics, when demand increases and supply decreases, the equilibrium price rises but the change in quantity is ambiguous. When demand increases and supply increases, both equilibrium price and quantity increase. When demand decreases and supply increases, equilibrium price falls and quantity change is ambiguous. When demand decreases and supply decreases, equilibrium price change is ambiguous and quantity decreases. Here, an unambiguous increase in quantity implies demand and supply both increase.

Answer:

C. Demand increases and supply increases.