If there were an increase in the market supply of a product with no change in market demand, the equilibrium price would:

Question

Quizplus · Accepted Answer

When there is an increase in the market supply of a product with no change in market demand, the equilibrium price decreases because there is more of the product available at every price point. The equilibrium quantity increases because the lower price encourages more consumers to buy the product.

If There Were an Increase in the Market Supply of a Product