An increase in the number of sellers will,ceteris paribus,
A) increase equilibrium price and quantity.
B) increase equilibrium price and decrease equilibrium quantity.
C) decrease equilibrium price and increase equilibrium quantity.
D) decrease equilibrium price and quantity.
E) increase demand.

Question

Quizplus · Accepted Answer

With an increase in the number of sellers, there is more competition in the market, which will lead to a decrease in the equilibrium price. However, with more sellers available, the market can supply more goods or services, leading to an increase in the equilibrium quantity. Therefore, the correct answer is C: decrease equilibrium price and increase equilibrium quantity.

An Increase in the Number of Sellers Will,ceteris Paribus