Suppose that the equilibrium price of pickles falls while the equilibrium quantity rises. The most consistent explanation for these observations is:
A)a decrease in demand for pickles with no change in supply.
B)an increase in demand for pickles with no change in supply.
C)a decrease in the supply of pickles and a decrease in the demand for pickles.
D)an increase in the supply of pickles with no change in demand.

Question

Quizplus · Accepted Answer

An increase in the supply of pickles would lead to a lower equilibrium price and a higher equilibrium quantity, assuming demand remains unchanged.

Suppose That the Equilibrium Price of Pickles Falls While the Equilibrium