Suppose you are told that the equilibrium price of bananas has increased, while the equilibrium quantity of bananas has fallen. You are also told that either the demand changed or supply changed, but not both. Which of the following must have occurred?
a. demand decreased
b. supply increased
c. demand increased
d. supply decreased

D. Supply decreased

Explanation:

When Supply of a product decreases the equilibrium price increases because at that point, demand of that commodity becomes more than the available quantity of the commodity. Also, a fall in the equilibrium quantity of a commodity in this case banana indicates that the supplier has reduced the amount of goods supplied at that particular point in time (supply decreased). It causes a relative scarcity of that product mostly when the demand for such commodity increases or maintain previous demand equilibrium numbers.

answer; organization;

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