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

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 answer is 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.