In which of the following cases must price always fall?

Question

Quizplus · Accepted Answer

In case C, if supply increases while demand remains constant, the market will have more goods than demanded, leading to a decrease in price to clear the excess supply. In case D, if demand decreases while supply increases, there will be even more excess supply relative to demand, also necessitating a price fall to encourage consumption. Both scenarios inherently lead to a price decrease.

In Which of the Following Cases Must Price Always Fall