When supply of a good or service increases, the equilibrium price of the good or service falls and the equilibrium quantity of the good or service rises.

True

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

False

No worries! We‘ve got your back. Try BYJU‘S free classes today!

Open in App

Solution

The correct option is A
True

True. When supply of a good or service increases, the equilibrium price of the good or service falls and the equilibrium quantity of the good or service rises.

Suggest Corrections

Similar questions

Explain the effects of ‘increase’ in supply of a good on its equilibrium and equilibrium quantity. Use diagram.

Explain the effects of ‘increase’ in supply of a good on its equilibrium price and equilibrium quantity with the help of a schedule.

If a country’s nominal GDP increases, it means the country is producing more goods and services. State true or false.

Join BYJU'S Learning Program