A decrease in the equilibrium price and an increase in the equilibrium quantity of a product in a market would be caused by:

Question

Quizplus · Accepted Answer

An increase in supply, while demand remains constant, leads to a lower equilibrium price because suppliers are willing to sell more at each price point. This also results in a higher equilibrium quantity because more of the product is available at lower prices, encouraging buyers to purchase more.

A Decrease in the Equilibrium Price and an Increase in the Equilibrium