An increase in the supply of running shoes will assuming demand is unchangedlead to _________. a) an
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An increase in the supply of running shoes will— assuming demand is unchanged—lead to _________.
a) an increase in equilibrium price and an increase in equilibrium quantity
b) a decrease in equilibrium price and a decrease in equilibrium quantity
c) an increase in equilibrium price and a decrease in equilibrium quantity
d) a decrease in equilibrium price and an increase in equilibrium quantity
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The correct answer is d a decrease in equilibrium price and an increase in equilibrium quantity When the supply of a good increases while demand remains unchanged it leads to a surplus in the market Producers are willing to supply more than consumers are willing to buy at the existing price To clear the surplus and restore equilibrium the price tends to decrease encouraging more buyers and reducing the quantity supplied This process results in a new equilibrium with a lower price and a ...View the full answer
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