A rise in the supply of a commodity cause - JAMB Economics 2019 Question
A rise in the supply of a commodity cause__________
A
an increase in the equilibrium price and decrease in the equilibrium quantity bought and sold
B
an increase in both equilibrium
C
a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold
D
a decrease in both equilibrium
correct option: c
There will be an excess supply over demand which will lead to a decrease in the equilibrium price and an increase in equilibrium quantity if the supply increase while the demand remains constant.
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