The demand for grapesgrapes is highest during summer and lowest during winter. Yet grapegrape prices are normally lower in summer than in winter. What must be happening to the supply of grapesgrapes , from winter to summer, for the equilibrium price to fall?

A. The supply increases, but less than the demand increases.

B. The supply does not change.

C. The supply for grapesgrapes decreases.

D. The supply increases more than the demand increases.

The correct answer is: D. The supply increases more than the demand increases.

Explanation:

The law of supply and demand is the basic principle on which a market economy is based. This principle reflects the relationship between the demand for a product and the quantity offered of that product taking into account the price at which Sell the product.

Thus, depending on the price in the market of a good, the bidders are willing to manufacture a certain number of that good. Like the plaintiffs they are willing to buy a certain number of that good, depending on the price. The point where there is a balance because the plaintiffs are willing to buy the same units that the bidders want to manufacture, for the same price, is called the market equilibrium or breakeven point.

According to this theory, the law of demand states that, keeping everything else constant, the quantity demanded of a good decreases when the price of that good increases. On the other hand, the law of supply indicates that, keeping everything else constant, the quantity offered of a good increases when its price does.