An increase in market supply, demand remaining the same causes:
A)Increase in equilibrium price
B)Decrease in equilibrium quantity
C)Decrease in equilibrium price and increase in equilibrium quantity
D)Both equilibrium price and quantity rises

Question

Quizplus · Accepted Answer

An increase in market supply, with demand remaining constant, leads to a decrease in equilibrium price due to the surplus of goods. At the same time, the equilibrium quantity increases because the lower price encourages more consumers to buy the product.

An Increase in Market Supply, Demand Remaining the Same Causes