JAMB - Economics (2019 - No. 8)
A rise in the supply of a commodity cause__________
an increase in the equilibrium price and decrease in the equilibrium quantity bought and sold
an increase in both equilibrium
a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold
a decrease in both equilibrium
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.
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