If the supply of a product increases, thena. more will be purchased at the same priceb. the price of the product must have declinedc. producers are willing to accept a lower price for each unit soldd. producers offer less for sale at each possible price

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Business

Dominique Guzman

15 April, 11:44

If the supply of a product increases, thena. more will be purchased at the same priceb. the price of the product must have declinedc. producers are willing to accept a lower price for each unit soldd. producers offer less for sale at each possible price

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Dominick Dudley · Answer 1

Answer: The price of the product must have declined.

Explanation: If the supply for a product increases the supply curve shifts down to the right. With demand for the product unchanged, this will lead to a decline in the price of the product and an increase in quantity.

As can be seen in the figure, Supply curve shifts from S0 to S1, and price falls from P0 to P1.