Asked by David Adamovich on May 26, 2024
Verified
If supply of a good increases while its demand decreases,then equilibrium price will fall.
Equilibrium Price
The price at which the quantity of a product offered for sale matches the quantity that buyers are willing to buy, leading to a stable market condition.
- Comprehend the core principles underlying the dynamics of supply and demand, along with the adjustment of curves in response to external variables.
Verified Answer
AR
Alaina RumrillMay 31, 2024
Final Answer :
True
Explanation :
The increase in supply and decrease in demand will result in excess supply of the good, causing suppliers to lower the price in order to sell all of their product. This leads to a new equilibrium where price is lower than before.
Learning Objectives
- Comprehend the core principles underlying the dynamics of supply and demand, along with the adjustment of curves in response to external variables.
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