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
The correct answer is: C
Explanation
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.