Sabrina decided to start selling lemonade on her street.The other kids in the neighborhood noticed that Sabrina was making a lot of money selling lemonade.These kids decided to open their own lemonade stand.When they opened their own lemonade stand,the equilibrium price ________ and the equilibrium quantity ________.

Question

Quizplus · Accepted Answer

When more sellers enter the market (in this case, more lemonade stands), the supply increases, leading to a shift in the supply curve to the right. This causes a decrease in the equilibrium price and an increase in the equilibrium quantity. Therefore, choice B is the most logical.

Sabrina Decided to Start Selling Lemonade on Her Street