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An increase in the supply of a commodity (rightward shift of supply curve) causes ______. - Economics

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Question

An increase in the supply of a commodity (rightward shift of supply curve) causes ______.

Options

  • decrease in equilibrium price and increase in equilibrium quantity

  • increase in equilibrium price

  • decrease in equilibrium quantity

  • no change

MCQ
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Solution

An increase in the supply of a commodity (rightward shift of supply curve) causes decrease in equilibrium price and increase in equilibrium quantity

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Chapter 6: Market Mechanism: Equilibrium Price and Quantity in a Competitive Market - TEST YOURSELF QUESTIONS [Page 113]

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Frank Economics [English] Class 12 ISC
Chapter 6 Market Mechanism: Equilibrium Price and Quantity in a Competitive Market
TEST YOURSELF QUESTIONS | Q 6. | Page 113
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