Which of the following is the best explanation of why the price adjusts following an increase in supply? Price adjusts automatically when supply changes. At the initial price, there will be a surplus after supply increases. Price must fall until the quantity demanded and quantity supplied are equal again. At the initial price, there will be a shortage after supply increases. Price must fall until the quantity demanded and quantity supplied are equal again. At the initial price, there will be a shortage after supply increases. Price must rise until the quantity demanded and quantity supplied are equal again. At the initial price, there will be a surplus after supply increases. Price must rise until the quantity demanded and quantity supplied are equal again.
Which of the following is the best explanation of why the
Price adjusts automatically when supply changes.
At the initial price, there will be a surplus after supply increases. Price must fall until the quantity demanded and quantity supplied are equal again.
At the initial price, there will be a shortage after supply increases. Price must fall until the quantity demanded and quantity supplied are equal again.
At the initial price, there will be a shortage after supply increases. Price must rise until the quantity demanded and quantity supplied are equal again.
At the initial price, there will be a surplus after supply increases. Price must rise until the quantity demanded and quantity supplied are equal again.
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