A large increase in the supply of HD-TV sets occurs simultaneously with a smaller decrease in its demand. As a result the equilibrium price will:

Question

Quizplus · Accepted Answer

When there is a large increase in supply and a smaller decrease in demand, the supply curve will shift to the right and the demand curve will shift to the left. As a result, the equilibrium price will decrease and the equilibrium quantity will increase. Therefore, the best choice is D.

A Large Increase in the Supply of HD-TV Sets Occurs