Without more information, the supply and demand model cannot predict the effect on price of

A. simultaneous increase in demand and decrease in supply.

B. a simultaneous decrease in quantity demanded and increase in quantity supplied.

C. a simultaneous decrease in demand and increase in supply.

D. a simultaneous increase in demand and increase in supply.

• Without more information, the supply and demand model cannot predict the effect on price of D. a simultaneous increase in demand and increase in supply.

A. A concurrent increase in demand and a decrease in supply results in the price of goods and services increasing; hence, the supply and demand model can be used to predict the prices of commodities and services easily.

B. A synchronized decrease in quantity demanded, and an increase in quantity supplied results in the prices of services and commodities reducing since the number of suppliers is higher than that of consumers. As a result, suppliers lower their prices to attract customers. Hence, in this scenario, the supply and demand model can be used to forecast the price effect.

C. A simultaneous decrease in demand and an increase in supply results in the prices of goods and services rendered decreasing. It occurs because few consumers are interested in the products or services offered by numerous suppliers or service providers. Hence, the supply and demand curve can be used to predict the price effect.

D. A simultaneous increase in demand and increase in supply results in a situation where the prices of products and services are unpredictable in the market. In such a scenario, the supply and demand model cannot be used to predict the price effect due to the simultaneous increase in demand and increase in supply. Therefore, the supply and demand model cannot predict the price effect when there is a simultaneous increase in demand and an increase in supply.