An increase in the supply of oranges will cause the equilibrium price of oranges to rise, ceteris paribus.

Name: An increase in the supply of oranges will cause the equilibrium price of oranges to rise, ceteris paribus.
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Question

Quizplus · Accepted Answer

According to the law of supply and demand, when the supply of a good increases, the price of the good decreases, ceteris paribus. Therefore, an increase in the supply of oranges would cause the equilibrium price of oranges to fall, not rise.

An Increase in the Supply of Oranges Will Cause the Equilibrium