-Assume Diagram 27.1b represents the market for wheat bread. The shift in supply from S₁ to S₂ will A) cause equilibrium price to fall and equilibrium quantity to fall B) cause equilibrium price to rise and equillibrium quantity to rise. C) cause equilibrium price to fall and equilibrium quantity to rise. D) cause equilibrium price to rise and equilibrium quantity to fall.

Question

Quizplus · Accepted Answer

A shift in the supply curve to the right (from S₁ to S₂) indicates an increase in supply. This typically leads to a lower equilibrium price due to the greater availability of the product, and a higher equilibrium quantity as more of the product is bought and sold at this lower price.