What would cause an increase in equilibrium quantity accompanied by a decrease in equilibrium price?
A) A outward shift or increase in demand.
B) An inward shift or decrease in demand.
C) An outward shift or increase in supply
D) An inward shift or decrease in supply.

Question

Quizplus · Accepted Answer

An outward shift or increase in supply would cause an increase in equilibrium quantity and a decrease in equilibrium price. This is because an increase in supply means there is a larger quantity of the product available in the market, leading to a decrease in price as suppliers compete to sell their goods. As the price decreases, demand for the product increases, resulting in a higher quantity being sold in the market.

What Would Cause an Increase in Equilibrium Quantity Accompanied by a Decrease