An increase in supply causes
A) quantity supplied to decrease.
B) supply and price to increase.
C) price to decrease.
D) price to increase.

Name: An increase in supply causes A) quantity supplied to decrease. B) supply and price to increase. C) price to decrease. D) price to increase.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

An increase in supply leads to a surplus of goods, which puts pressure on sellers to reduce prices in order to clear the excess inventory. Therefore, price will decrease.

An Increase in Supply Causes