What happens to market equilibrium quantity and price if supply increases and demand remains the same? a

Marketing Jan 09, 2021

What happens to market equilibrium quantity and price if supply increases and demand remains the same?

a. quality increases

b. price increases

c. quality decreases

Expert Solution

None of the given options are correct.

When supply increases and demand remains the same, the increased supply leads to a fall in prices. With this fall in prices, the people demand more due to which the equilibrium quantity increases.

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