The price of a good will fall if
A)demand for the good increases.
B)supply of the good decreases.
C)supply of the good increases.
D)demand for the good remains constant.
E)supply of the good remains constant.

Question

Quizplus · Accepted Answer

According to the law of supply, if there is an increase in the supply of a good, the price of the good will fall. This is because there is now a larger quantity of the good available in the market, which creates competition among sellers to lower their prices in order to attract buyers. Therefore, choice C is the best answer.

The Price of a Good Will Fall If