An Increase in Supply, Other Things Being Equal, Will Cause

question 296

Multiple Choice

An increase in supply, other things being equal, will cause which of the following to occur?

• A) quantity supplied to decrease.
• B) quantity demanded to increase.
• C) a rightward shift in the demand curve as the price falls.
• D) a leftward shift in the demand curves as the price increases.

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Definitions:

Price

The amount of money required to purchase a good or service, often determined by the interplay of supply and demand.

Output

The quantity of goods or services produced by a business, industry, or economy within a certain period.

Homogeneous Oligopoly

A market structure where a few firms sell products that are identical or very similar, making the products perfect substitutes for each other.

Laundry Products

These are detergents, fabric softeners, bleaches, and other additives used in the washing of clothes.