5
QuizMultiple Choice

Equilibrium

Question 5 • 26-27 Small Business Entrepreneurship A

There will be a lower equilibrium price and higher quantity if _____.

Answer
A
supply decreases and demand increases
B
supply increases and demand decreases
C
supply decreases and demand stays the same
D
supply increases and demand stays the same

Explanation

An increase in supply shifts the supply curve to the right. With demand unchanged, equilibrium price falls and equilibrium quantity rises. Therefore, the correct choice is “supply increases and demand stays the same.”

AI-written and checked against the verified answer.