What happens to a market in equilibrium when there is an increase in supply a.

Excess supply means that producers will make less of the good.

b.

Quantity demanded will exceed quantity supplied, so the price will drop.

c.

Quantity supplied will exceed quantity demanded, so the price will drop.

d.

Undersupply means that the good will become very expensive.

Question

Business

Annabella

20 November, 12:26

What happens to a market in equilibrium when there is an increase in supply a.

Excess supply means that producers will make less of the good.

b.

Quantity demanded will exceed quantity supplied, so the price will drop.

c.

Quantity supplied will exceed quantity demanded, so the price will drop.

d.

Undersupply means that the good will become very expensive.

+2

Answers (1)

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Javon Higgins · Answer 1

The answer to this question is C. Quantity supplied will exceed quantity demanded, so the price will drop.

When an increase in supply happens during market equilibrium, there will be an abundance of products that left unneeded by the consumers. This will make the sellerts lower the price of the product in order to attract consumers to buy it rather than having to acknowledge the loss