If supply increases and demand remains unchanged,equilibrium quantity will _______ and equilibrium price will ______________.

Question

Quizplus · Accepted Answer

If supply increases and demand remains unchanged, there will be a surplus of goods in the market. To clear this surplus, producers will reduce their prices, which will result in a decrease in equilibrium price. However, as supply has increased, the equilibrium quantity will increase. Therefore, the correct answer is D) rise, fall.

If Supply Increases and Demand Remains Unchanged,equilibrium Quantity Will _______