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WAEC Economics 2016 Question 16

Question 16

Price Determination

A shift in the supply curve to the right while demand curve remains the same will cause equilibrium price

  1. A.and quantity to fall.
  2. B.and quantity to rise.
  3. C.to rise and quantity to fall.
  4. D.to fall and quantity to rise.
Show the answer and explanation

Answer: D (to fall and quantity to rise.)

Explanation

More supply at every price lowers the price and raises the quantity traded.