A rise in the supply of a commodity cause__________

Economics

JAMB 2019

A. an increase in the equilibrium price and decrease in the equilibrium quantity bought and sold
B. an increase in both equilibrium
C. a decrease in the equilibrium price and an increase in the equilibrium quantity bought and sold
D. a decrease in both equilibrium

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Correct Answer: Option C

Explanation

If supply increase while the demand remains constant, there will be an excess supply over demand which will lead to a decrease in the equilibrium price and an increase in equilibrium quantity.

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