A rise in the supply of a commodity cause_________
...A rise in the supply of a commodity cause_________
An increase in the equilibrium price and decrease in the equilibrium quantity bought and sold
An increase in both equilibrium
A decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold
A decrease in both equilibrium
Correct answer is C
If supply increase while the demand remains constant, there will be an excess supply over demand which will lead to a decrease in the equilibrium price and an increase in equilibrium quantity.
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