If the price of a good decreases while the quantity of the good exchanged on markets increases, then the most likely explanation is that there has been
A) an increase in demand.
B) a decrease in demand.
C) an increase in supply.
D) a decrease in supply.

Question

Quizplus · Accepted Answer

An increase in supply typically leads to a decrease in the price of a good because more of the good is available. At the same time, the quantity of the good exchanged on markets increases because the lower price makes it more accessible to buyers.

If the Price of a Good Decreases While the Quantity