If Market Supply Increases

question 61

Multiple Choice

If market supply increases:

• A) equilibrium price and quantity will both increase.
• B) equilibrium price and quantity will both decrease.
• C) equilibrium price will increase but equilibrium quantity will decrease.
• D) equilibrium price will decrease but equilibrium quantity will increase.

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Definitions:

Lowest-Price Offering

A pricing strategy where a company sets the cost of its product or service lower than that of its competitors to attract price-sensitive customers.

Marketing Mix

A framework used by marketers to analyze and implement the four critical aspects of marketing: product, price, place, and promotion.

Generates Revenue

The process of creating income for a business or organization through various activities such as selling goods, services, or other assets.

Target Return Pricing

A pricing strategy businesses use where prices are set based on a targeted return on investment.