Ceteris paribus,an increase in the number of sellers of running shoes causes equilibrium price to
A)Decrease and equilibrium quantity to increase.
B)Decrease and equilibrium quantity to decrease.
C)Increase and equilibrium quantity to increase.
D)Increase and equilibrium quantity to decrease.

Question

Quizplus · Accepted Answer

An increase in the number of sellers in the market for running shoes, assuming all other factors remain constant (ceteris paribus), typically leads to increased competition. This results in a decrease in the price of running shoes as sellers compete for customers, and an increase in the quantity sold as more shoes become available at lower prices.

Ceteris Paribus,an Increase in the Number of Sellers of Running