Multiple Choice
The following table shows the demand for, and supply of, soya milk in a particular market (the quantities are in thousands of liters per day) :
-If the demand curve is upward-sloping, what would be the effect of an increase in supply?
A) An increase in supply would be impossible.
B) It will reduce both the price and the quantity traded.
C) It will increase both the price and the quantity traded.
D) It will increase the quantity traded but will reduce the price.
E) It might or might not increase the price and quantity traded depending on the comparative slopes of the curves.
Correct Answer:
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