Which of the following would result from an increase in the supply of a good?
A) Both equilibrium price and quantity would rise.
B) Both equilibrium price and quantity would fall.
C) Equilibrium price would rise, and equilibrium quantity would fall.
D) Equilibrium quantity would rise, and equilibrium price would fall.

Question

Quizplus · Accepted Answer

An increase in the supply of a good would shift the supply curve to the right, leading to a surplus of the good at the original equilibrium price. As a result, producers would lower the price to sell more of the good, leading to a new equilibrium with a higher quantity and lower price. Therefore, equilibrium quantity would rise, and equilibrium price would fall.

Which of the Following Would Result from an Increase in the Supply