An increase in the supply of the product implies:

Name: An increase in the supply of the product implies:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in supply implies that there is now more of the product available in the market, which would lead to increased competition among producers. To remain competitive, producers would have to lower their prices to sell their increased quantity of output. Therefore, the correct choice is D, which states that producers will now charge a lower price for a given quantity of output.

An Increase in the Supply of the Product Implies