Ceteris paribus, if the market supply of a product increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
A)increase; decrease
B)decrease; increase
C)increase; increase
D)decrease; indeterminate

Question

Ceteris paribus, if the market supply of a product increases, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
A)​increase; decrease
B)​decrease; increase
C)​increase; increase
D)​decrease; indeterminate

Quizplus · Accepted Answer

When market supply increases, ceteris paribus, the equilibrium quantity will increase because more of the product is available, and the equilibrium price will decrease due to the higher supply lowering the price.

Ceteris Paribus, If the Market Supply of a Product Increases