An increase in the number of sellers of a good will __________________ for that good,ceteris paribus.
A) increase equilibrium price and quantity
B) increase equilibrium price and decrease equilibrium quantity
C) decrease equilibrium price and increase equilibrium quantity
D) decrease equilibrium price and quantity
E) increase demand

Question

Quizplus · Accepted Answer

An increase in the number of sellers will increase the supply of the good, shifting the supply curve to the right. This will result in a decrease in equilibrium price and an increase in equilibrium quantity. Therefore, the correct choice is C - decrease equilibrium price and increase equilibrium quantity.

An Increase in the Number of Sellers of a Good