A student writes the following Increased production leads to

A student writes the following Increased production leads to a lower price, which in turn increases demand.\" This student must be referring to an increase in demand an increase in quantity demanded

Solution

The correct option is b

Explanation : An increase in the production will lower the prices as the quantity of goods produced will be more . The lowering of the prices will lead to an increase in the quantity demanded .

 A student writes the following Increased production leads to a lower price, which in turn increases demand.\

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