Other things being equal, an increase in supply will lead to
-
a fall in price and an increase in quantity bought and sold
- an increase in price and increase in quantity bought and sold
- a fall in price and a fall in quantity bought and sold
- an increase in quantity supplied and demanded only
The correct answer is: A
Explanation
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.