The price will decrease if demand remains same and _____________.

supply increases

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supply decreases

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supply is more than the previous level

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none of the above

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Solution

The correct option is B supply is more than the previous level
If demand remains unchanged and supply increases, a surplus occurs, leading to a lower equilibrium price.
Hence, the correct option is C.

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A decrease in demand and increase in supply causes the equilibrium price to __________.

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