Which of the following would cause a decrease in the equilibrium price and an increase in the equilibrium quantity of salmon?
A)a decrease in demand and an increase in supply
B)an increase in supply
C)an increase in supply and an increase in demand greater than the increase in supply
D)a decrease in demand and a decrease in supply

Question

Quizplus · Accepted Answer

An increase in supply will lead to a decrease in the equilibrium price and an increase in the equilibrium quantity, as there is now more supply available at any given price level. Option A and D involve a decrease in demand, which would lead to a decrease in both equilibrium price and quantity. Option C involves an increase in both supply and demand, but as the increase in demand is greater than the increase in supply, it would lead to an increase in both equilibrium price and quantity.

Which of the Following Would Cause a Decrease in the Equilibrium