A rise in the supply of a commodity cause__________
A. an increase in the equilibrium price and decrease in the equilibrium quantity bought and sold B. an increase in both equilibrium C. a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold D. a decrease in both equilibrium
Correct Answer: 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.
