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    Question

    If the supply of sugar increases in a market in

    equilibrium, the equilibrium price will _______ and the equilibrium quantity will _______. 
    A Increase; increase Correct Answer Incorrect Answer
    B Decrease; decrease Correct Answer Incorrect Answer
    C Increase; decrease Correct Answer Incorrect Answer
    D Decrease; increase Correct Answer Incorrect Answer

    Solution

    When supply increases, the price tends to fall because of the greater availability of the product. The equilibrium quantity rises as more of the product is sold at the lower price.

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