Question

Everything else remaining unchanged, an increase in the supply of security a and a decrease in the demand for security b will cause the price of security a to ____ and the price of security b to ____.

Answer 1

If every thing else remain constant, an increase in the supply of security A and a decrease in the demand for security B will cause the price of security A to FALL and the price of security B to FALL. This is because, when supply increases, price usually falls and when demand decreases, price also fall too.