A rise in supply of a commodity leads to a __________.

increases the price of that commodity

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decreases the price of that commodity

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neutralizes the changes in the price

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determines the price elasticity

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Solution

The correct option is B decreases the price of that commodity
Demand of any commodity can fall due to increased prices and hence to increase the demand the prices are taken down. Similarly when the supply of a commodity increases and the quantity demanded decreases, to increase the sales prices are bought down.

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