Microeconomics 6th Edition by Robert Hall, Shirley Kuiper, Marc Lieberman

Exercise 3

Consider the following forecast: "Next month,we predict that the demand for oranges will continue to increase,which will tend to raise the price of oranges. However,the higher price will increase supply,and a greater supply tends to lower prices. Accordingly,even though we predict that demand will increase next month,we cannot predict whether the price of oranges will rise or fall." There is a serious mistake of logic in this forecast. Can you find it? Explain