An increase in supply will result in:

Name: An increase in supply will result in:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When there is an increase in supply, the market becomes more competitive with an excess supply of the product, and producers will typically decrease prices to try and sell more goods. By decreasing prices, it becomes more likely for people to buy from suppliers, since the product will be more affordable. Therefore, equilibrium price decreases, while the equilibrium quantity increases.

An Increase in Supply Will Result In