Exhibit 3-10
-An increase in the number of sellers of a good will,ceteris paribus,__________________ for that good.
A)increase equilibrium price and quantity
B)increase equilibrium price and decrease equilibrium quantity
C)decrease equilibrium price and increase equilibrium quantity
D)decrease equilibrium price and quantity
E)increase demand

Question

Exhibit 3-10 
-An increase in the number of sellers of a good will,ceteris paribus,__________________ for that good.
A)increase equilibrium price and quantity 
B)increase equilibrium price and decrease equilibrium quantity 
C)decrease equilibrium price and increase equilibrium quantity 
D)decrease equilibrium price and quantity 
E)increase demand

Quizplus · Accepted Answer

An increase in the number of sellers of a good will lead to a shift in the supply curve to the right, causing an increase in the equilibrium quantity and a decrease in the equilibrium price. Therefore, the correct choice is C, decrease equilibrium price and increase equilibrium quantity. None of the other choices accurately explain the impact of an increase in the number of sellers on the equilibrium price and quantity.

Exhibit 3-10 -An Increase in the Number of Sellers of a Good