Everything else remaining unchanged, an increase in the supply of a good will lead to: a...

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Everything else remaining unchanged, an increase in the supply of a good will lead to: a...

Everything else remaining unchanged, an increase in the supply of a good will lead to:

a fall in price and an increase in consumption of the good. (this is the correct answer)
an increase in the cost of production of the good.
an increase in the price of the good.
a leftward shift of the supply curve.
an upward movement along the supply curve (this one is wrong)

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business economics

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Answer 1

Answer #1

Answer

Option a

a fall in price and an increase in consumption of the good

the increase in the supply shifts the supply curve to right and down which increases the quantity and decreases price in the new equilibrium

The increase in the quantity means increases the consumption of the good.

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Answer 2

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