-An increase in supply will have what effect on equilibrium price and quantity?
A)Price will increase; quantity will decrease.
B)Price will decrease; quantity will increase.
C)Both price and quantity will increase.
D)Both price and quantity will decrease.

Question

-An increase in supply will have what effect on equilibrium price and quantity?
A)Price will increase; quantity will decrease. 
B)Price will decrease; quantity will increase. 
C)Both price and quantity will increase. 
D)Both price and quantity will decrease.

Quizplus · Accepted Answer

An increase in supply, assuming demand remains constant, typically leads to a decrease in the equilibrium price because there is more of the good or service available. At the same time, the quantity of the good or service sold increases because the lower price encourages more consumers to buy.

-An Increase in Supply Will Have What Effect on Equilibrium