The market for music lessons What will definitely happen to the price and quantity of music lessons?
Choose 1

A
P increased
Q unknown

B
P decreased
Q unknown
​
C
P increased
Q stays the same
​
D
P increased
Q increased
​
E
Q increased
P stays the same

C . P increased

Q stays the same

Explanation:

The price of music lessons increased as the demand increased and shifted the Demand curve right yet the supply decreased and shifted the supply curve left. The new intersection between the Demand curve and the supply curve led to a higher equilibrium price as shown on the graph.

The Quantity however remained the same as shown. When the demand increased and the supply decreased, the new equilibrium was the same quantity which means that it remained the same. Had supply remained the same or increased, quantity would have increased as well.

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