Consider the following statement: "An increase in supply decreases the equilibrium price. The decrease in price increases dem

Question

4 years ago

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Consider the following statement: "An increase in supply decreases the equilibrium price. The decrease in price increases dem

and." The statement is A. false: decreases in price affect the quantity demanded, not demand. B. false: increases in supply increase price. Decreases in price increase demand. C. true: increases in supply decrease price. Decreases in price increase demand. D. false: increases in supply decrease price.

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1 answer:

pochemuha · Answer 1 · 2022-01-31T17:34:22+03:00

Answer:

The correct answer is option A.

Explanation:

An increase in supply decreases the equilibrium price as the supply curve shifts rightward and intersects the demand curve at a lower point. This decline in the equilibrium price causes the quantity demanded to increase. The demand for the product remains the same.

The statement given in the question is false. A change in demand is caused by a change in other factors while the price of the product remains the same. The change in price affects the quantity demanded.

Consider the following​ statement: ​"An increase in supply decreases the equilibrium price. The decrease in price increases​ dem

Consider the following statement: "An increase in supply decreases the equilibrium price. The decrease in price increases dem