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What happens to a market in equilibrium when there is an increase in supply? A. Excess supply means that producers will make less of the good. B. Quantity demanded will exceed quantity supplied, so the price will drop. C. Quantity supplied will exceed quantity demanded, so the price will drop. D. Undersupply means that the good will become very expensive.
Weegy: B. Quantity demanded will exceed quantity supplied, so the price will drop is the answer (More)
Question
Expert Answered
Updated 12/28/2011 10:28:24 AM
1 Answer/Comment
C. Quantity supplied will exceed quantity demanded, so the price will drop. This is what happens when there is an increase in supply.
Added 12/28/2011 10:28:24 AM
This answer has been added to the Weegy Knowledgebase
Why do fads often lead to shortages, at least in the short term? A. Buyers and sellers are unable to agree on a price for the good. B. Laws prevent stores from responding to excess demand in time to prevent a shortage. C. Manufacturers charge extremely high prices for the goods that stores are unwilling to pay. D. Demand increases so quickly and unexpectedly that time is needed for the quantity supplied and price to ...
Question
Not Answered
Updated 3/15/2014 8:17:14 AM
1 Answer/Comment
Fads often lead to shortages, at least in the short term because : Buyers and sellers are unable to agree on a price for the good.
Added 3/15/2014 8:17:14 AM
This answer has been confirmed as correct, not copied, and helpful.
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