When supply increases

Question

Quizplus · Accepted Answer

When supply increases, there is an excess supply of the product in the market, which leads to a decrease in price to encourage consumers to buy more of the product. Therefore, Option D is correct. Option A is incorrect because demand is not affected by supply. Option B is incorrect because excess supply leads to a decrease in price, not an increase. Option C is incorrect because an increase in supply would mean more of the product is available, not less.

When Supply Increases