A Moving to another question will save this response Question 16 In a competitiv

Question

A Moving to another question will save this response Question 16 In a competitive market, if supply increases and demand does not change, which of the following will result? the equilibrium price will increase and the equilibrium quantity demanded will decrease O both the equilibrium price and the equilibrium quantity demanded will decrease both the equilibrium price and the quantity demanded will increase the equilibrium price will decrease but the equilibrium quantity demanded will increase. Moving to another question will save this response.

Explanation / Answer

Ans.

D.The equilibrium price will decrease but the equilibrium quantity demand will increase.

When supply increases , with no change in demand then the supply curve will shift right. As a result due to increase in supply there is excess supply at the old equilibrium level. Which leads to competition between sellers to sell their supply. Due to which there is decrease in price. Thus, there is decrease in equilibrium price and rise in equilibrium quantity demand.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.