Suppose that the equilibrium price of apples falls and the equilibrium quantity increases. Which of the following best fits the observed data?
A)An increase in demand with supply constant.
B)A decrease in supply with demand constant.
C)An increase in demand coupled with an increase in supply.
D)An increase in supply with demand constant.

Question

Quizplus · Accepted Answer

An increase in supply with demand constant would lead to a lower equilibrium price and a higher equilibrium quantity, which matches the observed data.

Suppose That the Equilibrium Price of Apples Falls and the Equilibrium