Asked by Michael Byars on May 09, 2024
Verified
If demand is downward sloping,an increase in supply with no change in demand will lead to a(n) _____ in equilibrium quantity and a(n) _____ in equilibrium price.
A) increase;increase
B) increase;decrease
C) decrease;increase
D) decrease;decrease
Equilibrium Quantity
At the market price, the supply of goods or services is equivalent to the demand.
Equilibrium Price
The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.
Supply
The total amount of a specific good or service that is available to consumers at a given time.
- Grasp the nexus between alterations in supply and demand curves and the consequent changes in market equilibrium price and quantity.
Verified Answer
TD
Thaís DutraMay 14, 2024
Final Answer :
B
Explanation :
An increase in supply, with demand remaining constant, leads to a higher equilibrium quantity and a lower equilibrium price, according to basic principles of supply and demand.
Learning Objectives
- Grasp the nexus between alterations in supply and demand curves and the consequent changes in market equilibrium price and quantity.
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