Suppose a market begins in equilibrium. If supply increases, then at the original equilibrium price the quantity demanded is

Question

Quizplus · Accepted Answer

When supply increases, at the original equilibrium price, the quantity supplied will exceed the quantity demanded, leading to a surplus of goods. This is because the increase in supply, without a change in demand, means there are more goods available than people want to buy at that price.

Suppose a Market Begins in Equilibrium