If supply increases, ceteris paribus, market price will be ______ at the new equilibrium point.
A) higher
B) lower
C) the same
D) either higher or lower

Name: If supply increases, ceteris paribus, market price will be ______ at the new equilibrium point. A) higher B) lower C) the same D) either higher or lower
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Question

Quizplus · Accepted Answer

When supply increases, there is a surplus of goods in the market, which leads to a decrease in price. As a result, the market price will be lower at the new equilibrium point.

If Supply Increases, Ceteris Paribus, Market Price Will Be ______