Answer:
Demand has increased
Explanation:
The willingness and ability to purchase a product or a service is the demand for that product. All things remaining constant, the price of a product is the point at which supply meets demand. A shift in either supply or demand will result in a change in price.
At the current price of $4, a customer can buy 20 units. Last year, the same $4 could buy $30 units. The same amount of money has purchased fewer units compared to last year, which implies an increase in the price per unit. As per demand and supply theory, an increase in demand without a subsequent increase in supply results in an increment in price. The increase in demand pushes the equilibrium point upwards, resulting in a higher price.
