Economy, asked by babultiwari1985, 4 months ago

6. During 2018-2019 we saw significant increases in the manufacturing of cars in
India. During the same time period we also observed significant rises in the demand
for cars. We know that during that time period both price and the level of car traded
increased. Based on that information what most likely happened in the market?
(1)
(a) The rise in supply was more than the rise in demand.
(b) The rise in demand was more than the rise in supply.
(c) The rise in demand was perfectly matched by rise in the supply.
(d) None of the above

Answers

Answered by Dangerousdinosour

Answer:

The rise in supply was more than the rise in demand.

Explanation:

Answered by Afreenakbar

Answer:

(b) The rise in demand was more than the rise in supply.

Explanation:

According to the information given, it is most likely that (b) The rise in demand was more than the rise in supply. This is due to the fact that during the same time period, both the manufacturing and demand for cars increased significantly.

However, the price of cars also increased, indicating that there was a greater demand than supply. We would anticipate a fall in price rather than an increase in price if the increase in supply had outpaced the increase in demand.

Option (c) is improbable since it is uncommon for supply and demand in a market to be exact opposites. Option (d) can also be disqualified since, given the information, one of the choices must be accurate.