As a result of an increase in the supply of a good, the equilibrium quantity ________ and the equilibrium price ________.

Question

Quizplus · Accepted Answer

When the supply of a good increases, the equilibrium quantity of the good in the market typically increases because more of the good is available. At the same time, the equilibrium price falls because the increased supply, assuming demand remains constant, puts downward pressure on prices.

As a Result of an Increase in the Supply of a Good