Question on: WAEC Economics - 2014

Other things being equal, an increase in supply will lead to

A
a fall in price and an increase in quantity bought and sold
B
an increase in price and increase in quantity bought and sold
C
a fall in price and a fall in quantity bought and sold
D
an increase in quantity supplied and demanded only
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Correct Option: A

A change in supply will cause equilibrium price and output to change inopposite directions. a. An increase in supply will cause a reduction in the equilibrium price and an inase in the equilibrium quantity of a good.

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