Macroeconomics 11th Edition by Stephen Slavin

Exercise 62

Before you get started, you'll find it's much easier to answer many of these questions by first sketching a graph of a supply and demand curve. In fact, that graph will help you answer the first four questions.
Circle the letter that corresponds to the best answer.
An increase in supply while demand remains unchanged will lead to _____.
a) an increase in equilibrium price and a decrease in equilibrium quantity
b) a decrease in equilibrium price and a decrease in equilibrium quantity
c) an increase in equilibrium price and an increase in equilibrium quantity
d) a decrease in equilibrium price and an increase in equilibrium quantity