In an increase in supply with unchanged demand:

CA Foundation · Business Economics · PYQS · September 2025
In an increase in supply with unchanged demand:
(A) A. The equilibrium price will go down and the quantity demanded will go up.
(B) B. The equilibrium price will go up and the quantity demanded will go down.
(C) C. The equilibrium price will go up and the quantity demanded will remain constant.
(D) D. The equilibrium price will go down and the quantity demanded will also go down.

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. The equilibrium price will go down and the quantity demanded will go up.

Topics: Price Determination in Different Markets

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