Other things being equal an increase in supply ... - WAEC Economics 2014 Question
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
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.
Please share this, thanks:
Add your answer
No responses