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10 Supply and Demand Practice Questions

By Mike Moffatt, About.com

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10 Supply and Demand Practice Questions - Question 4

Question 4: In December, the price of Christmas trees rises and the quantity of trees sold rises. Is this a violation of the law of demand?

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Answer: No. This is not simply a move along the demand curve here. In December demand for Christmas trees rises, causing the curve to shift to the right. This allows both the price of Christmas trees and the quantity sold of Christmas trees to rise.

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