When the supply of bubble gum increases while the demand for bubble gum decreases, the equilibrium ________ of bubble gum will definitely ________, ceteris paribus.

Question

Quizplus · Accepted Answer

When the supply of a product increases, it typically leads to a decrease in price, assuming demand remains constant. Conversely, when demand decreases, it also tends to lower the price, assuming supply remains constant. Therefore, with both supply increasing and demand decreasing, the equilibrium price of bubble gum will definitely decrease.

When the Supply of Bubble Gum Increases While the Demand