WAEC - Economics (2019 - No. 10)
What effect will an increase in the supply of fish have on the meat market
a fall in equilibrium price and quantity
an increase in equilibrium price and quantity
an increase in equilibrium price and a fall in quantity
both equilibrium price and quantity will remain unchanged
Explanation
If there is an increase in supply while the demand tends to remain the same, prices will most likely fall.
So an increase in the supply of fish in the market will only affect the demand and price of the fish as they may be more fish in the market than people who are willing and ready to buy the fish. This, however, will not affect the prices or the quantity demanded of meat.
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