Answer to Question #327500 in Microeconomics for Anonymous

Question

The market for drones has undergone some changes over the past two years. As a result of these changes, the equilibrium quantity of drones has increased substantially with almost no change in the equilibrium price. Which of the following is the most likely explanation for these changes? Over the past two years:

1.demand has increased and supply has decreased.

2.both supply and demand have increased.

3.both supply and demand have decreased.

4.supply has increased and demand has decreased.

Answer 1

4. supply has increased and demand has decreased.