If supply increases while demand decreases:

CA Foundation · Business Economics · MTP · June 2024
If supply increases while demand decreases:
(A) A. the equilibrium price will definitely increase.
(B) B. the equilibrium quantity will definitely increase.
(C) C. the equilibrium price will definitely decrease.
(D) D. the equilibrium quantity will definitely decrease.

Suggested Answer and Working Notes:

Correct Answer: Option (C)

C. the equilibrium price will definitely decrease.

Topics: Price Determination in Different Markets

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