If market supply increases:
A) equilibrium price and quantity will both increase.
B) equilibrium price and quantity will both decrease.
C) equilibrium price will increase but equilibrium quantity will decrease.
D) equilibrium price will decrease but equilibrium quantity will increase.

Question

Quizplus · Accepted Answer

When market supply increases, the supply curve shifts to the right, leading to a lower equilibrium price and a higher equilibrium quantity.

If Market Supply Increases