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WAEC Economics 2019 Question 10

Question 10

Price Determination

What effect will an increase in the supply of fish have on the meat market?

  1. A.A fall in equilibrium price and quantity.
  2. B.An increase in equilibrium price and quantity.
  3. C.An increase in equilibrium price and a fall in quantity.
  4. D.Both equilibrium price and quantity remain unchanged.
Show the answer and explanation

Answer: A (A fall in equilibrium price and quantity.)

Explanation

Cheaper fish draws buyers away from meat, so demand for meat falls: its price and quantity both fall.