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Market for a good is in equilibrium. An increase in supply for the good will
  • a)
    Raise the price
  • b)
    Lower the price
  • c)
    Only quantity exchanged is affected
  • d)
    Price is unaffected
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Market for a good is in equilibrium. An increase in supply for the goo...
According to basic economic theory, the supply of a good will increase when its price rises. Conversely, the supply of a good will decrease when its price decreases. There's also price elasticity of demand. This measures how responsive the quantity demanded is affected by a price change.
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Most Upvoted Answer
Market for a good is in equilibrium. An increase in supply for the goo...
As there will be increase in supply automatically
price of that commodity 
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Market for a good is in equilibrium. An increase in supply for the good willa)Raise the priceb)Lower the pricec)Only quantity exchanged is affectedd)Price is unaffectedCorrect answer is option 'B'. Can you explain this answer?
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