Problem
Consider a situation where the price of a good rises when output increases.?For example,?lithium is used in rechargeable batteries for computers,?phones,?other electronic goods,?and even certain cars.?Demand for lithium was low as recently as the early?2000s.?Since then,?both the price of lithium and the production of lithium have more than doubled.
What could explain the simultaneous increases in the price of lithium and the production of lithium? ?Use supply and demand curves to explain your answer.